The British pound skyrocketed yesterday as the UK Parliament voted in favor of stopping a no-deal Brexit under any circumstances. Today, we have the third vote in line this week, with lawmakers called to vote over extending Article 50. EU and US equity markets were a sea of green yesterday, perhaps on hopes that British lawmakers will vote down a disorderly Brexit. The slowdown in the US PPIs may have also contributed to the upbeat sentiment. As for tonight, during the Asian morning Friday, the Bank of Japan concludes its two-day monetary policy meeting, but we don’t expect any material changes.
GBP Rallies on No-deal Exit Rejection, Extension Vote Looms
And back to the sky. The pound rebounded to outperform all its major peers yesterday. It gained the most against JPY, NZD, and USD in that order, while the currencies that lost the least were SEK and NOK.
For the umpteenth time, the catalyst was developments surrounding the Brexit landscape. Yesterday, the Parliament was scheduled to vote on whether they prefer to...
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