Comments by opposition leader Jeremy Corbyn, hinting that a referendum could take place while also supporting the case of an election, coupled with Juncker’s statement that he warned May against extension beyond May 23 appear to be fanning the flames on May’s already fragile position.
The overall sentiment is that the EU is hardening its stance against the UK, as the latter finds itself appearing like a student trying to justify handing in a late assignment, given that the EU does not trust Theresa May to give her support to a credible process to allow parliament to find an alternative deal. This would mean that the EU would make May 22 the definitive UK exit day, with no further extensions at that point.
After the comments were made, EURGBP rose by more than 110 pips, however regaining half of the losses in the next candle. Still, the currency is trading away from its nearest Support level at 0.86, which is also the Fib. 61.8% level. While also far from the 0.8675 (Fib. 100%) level, if negative news continue, along with the never-ending discussions at the UK Parliament, the future of Sterling is likely to abide with the bullish signals issued by both the Stochastics and the MACD indicator.
Click here to access the Economic Calendar
Dr Nektarios Michail
Market Analyst
Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.
