FxPro: Brexit tensions are far from over

Pound is strengthening for the second day in a row as Parliament is trying to persuade the Government to postpone the Brexit date past March 29th to take no-deal off the table. Labour’s position is in favour of that outcome, while the EU is ready to entirely ‘rework’ future relationship with the UK.

Potential postponing of Brexit and excluding a no-deal Brexit as one of the possibilities is creating a demand for the pound sterling. As a result, the GBPUSD pair exceeded the 1.30 mark and for the first time in two months, with today’s increase being more than 0.6%.

Although, the delay in exiting the EU is not yet finalized, as we’ve seen with everything Brexit-related, things change rapidly and get re-worked on a daily basis. There is already news from France that delaying Brexit will be very complicated, while Mrs. May says that doing so will not “resolves any issues”, but simply postpone the decisions that need to be made anyway.

Without wanting to make long-term predictions, the markets are reacting positively to the news of a possible second referendum and a delay of Brexit… while we settle in for many more days of negotiating and debates on the matter…