GBP grows inspired that the fate of Brexit is now in the Parliament’s hands

The British pound is experiencing a surge of investor optimism after the British Parliament took the initiative of setting the agenda for further voting on Brexit. Investors view this situation in terms of the emergence of possible new alternatives to the current exit plan. In particular, it is possible that we will see new polls related to a softer exit, a longer postponement, or even a new referendum.

As before, the ways to resolve the legislative deadlock are uncertain, but even a small increase in the chances for a later Brexit allows the pound to fight the tide. Sterling rose to 1.3260 (weekly highs) against the dollar, despite the USD increase on global markets.

Against the euro, the dynamic was even more pronounced due to the EUR weakness. EURGBP lost 2.3% from peak levels on Thursday and returned to the support area at 0.8500.

At the same time, it is worth noting the highest degree of uncertainty around the Brexit date and conditions, therefore, new information can dramatically change the fate of the British currency.

At the moment it is assumed that if the lawmakers of Britain until April 12 support Theresa May’s plan, then Britain will leave the European Union on May 22. If not, then Brexit may take place on April 12 without a deal. The European Union is already warning about the consequences of this outcome and announce that they are ready for it.

Alexander Kuptsikevich, the FxPro analyst