Log in
Forgot password ?
Become a member for free
Sign up
Sign up
Dynamic quotes 

4-Traders Homepage  >  Currencies  >  Euro / British Pound (EUR/GBP)    EURGBP   

News SummaryAll newsTweets

EUR/GBP, GBP/JPY, & GBP/USD near Breaking Points as Brexit Fears Resurface

share with twitter share with LinkedIn share with facebook
share via e-mail
10/03/2016 | 12:40pm CET
DailyFX.com -

Talking Points:

- UK Prime Minister Theresa May signals triggering of Article 50 by March 2017.

- Increasingly looking like a 'hard Brexit' is a likely outcome.

- See the DailyFX economic calendar for the week of October 2 to October 7.

The British Pound is back in the news due to its weak performance across the board today, after UK Prime Minister Theresa May outlined a more definitive timeline for the 'Brexit' over the weekend. The Great Repeal Bill, as it's purported to be called, will trigger the sever the tightly knit sovereign bonds forged those decades ago. What the UK PM had to say was quite revealing:

"We are going to be a fully independent, sovereign country - a country that is no longer part of a political union with supranational institutions that can override national parliaments and courts...And that means we are going, once more, to have the freedom to make our own decisions on a whole host of different matters, from how we label our food to the way in which we choose to control immigration."

In context of what we already know about the European Union's negotiating position about Brexit - essentially, 'bugger off' - there's little reason to think that this process will be smooth. The fact is, the powers that be at the European Union have a vested interest in seeing the union stay together and succeed, so they will make the actual Brexit as uneasy as possible so as to deter other potential disenfranchised states from ending their formal membership in the EU.

Concurrently, with politics finally meeting reality - don't for a second think its a coincidence that the British Pound topped this summer the day after UK Parliament came back into session - GBP-crosses are under pressure this morning, and appear to be setting themselves up for a period of greater and volatility.

Whereas other major currencies have seemingly lacked a unifying thematic driver (the US Dollar's sensitivity to the Fed, for example, is dropping pre-US elections), GBP-crosses are moving in lockstep around Brexit-related headlines. As such, the multi-week consolidations that we've been eying in EUR/GBP, GBP/JPY, and GBP/USD may finally be on the verge of resolving themselves.

See the video (above) for technical considerations in EUR/USD, GBP/USD, USD/JPY, EUR/JPY, GBP/JPY, EUR/GBP, and the USDOLLAR Index.

Read more: EUR/USD Coil Grows Tighter as Central Banks, Politicians Face Credibility Deficit

--- Written by Christopher Vecchio, Currency Strategist

To contact Christopher Vecchio, e-mail [email protected]

Follow him on Twitter at @CVecchioFX

To be added to Christopher’s e-mail distribution list, please fill out this form

original source
Stocks mentioned in the article
ChangeLast1st jan.
BRITISH POUND / JAPANESE YEN (GBP/JPY) 0.29% 149.133 Delayed Quote.-2.92%
BRITISH POUND / US DOLLAR (GBP/USD) -0.14% 1.40061 Delayed Quote.3.30%
EURO / BRITISH POUND (EUR/GBP) -0.53% 0.87488 Delayed Quote.-0.85%
EURO / JAPANESE YEN (EUR/JPY) -0.23% 130.481 Delayed Quote.-3.80%
EURO / US DOLLAR (EUR/USD) -0.67% 1.22544 Delayed Quote.2.37%
US DOLLAR / JAPANESE YEN (USD/JPY) 0.43% 106.469 Delayed Quote.-5.95%

© FXCM 2016
share with twitter share with LinkedIn share with facebook
share via e-mail
Latest news on EURO / BRITISH POUND (EUR/
03/14Sterling to spoil any boost to bonds from Brexit deal doubts
01/11Euro, bond yields rise as ECB to revisit policy message in early 2018
2017CURRENCIES : Pound Rallies To 6-month High Against Euro After Brexit Breakthroug..
2017EUROPE MARKETS : French Stocks Push To 2-week High As Data Show Business Booming
2017EUROPE MARKETS : European Stocks Choppy, But French Shares Push To 2-week High O..
2017FTSE closes flat as sterling bounces back on Brexit hopes
2017Sterling Weaker Before U.K. Labor Market Survey -- Market Talk
2017CURRENCIES : Dollar Softens As Inflation Report Disappoints
2017Sterling skids to nine-month low vs euro as BoE keeps rates unchanged
2017Recruiter Robert Walters looks outside UK for growth after Brexit
More news