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Thomson Reuters
Mar 14 - 08:36 PM
GBP/USD - RPT-BUZZ-COMMENT-Brexit Groundhog Day Poses Risks To Sterling
First appeared on eFXplus on Mar 14 - 07:05 PM

Repeats with no changes

Third time lucky, as the saying goes, or at least that's what UK PM May appears to be hoping about her much-maligned Brexit deal with the EU.
The Brexit delay that British lawmakers approved on Thursday nL8N2112BD could also be a lucky for sterling by reducing the overhang of a hard Brexit, but only if it breaks the impasse nL1N2110OZ over how the UK leaves the EU.
As analysts at Societe Generale said: "The pressure on the currency will undoubtedly be lighter if an ordered Brexit takes shape." Initial price reaction wasn't dramatic, but it also wasn't terribly encouraging, suggesting markets still don't see a solution taking shape.
Which brings us back to May's plan.
She's going to take one more shot, at least, at getting her deal through parliament.
Time will tell if that's a wise use of time, but results so far suggest that point is open to debate.
The idea of a delay was initially good for sterling when markets got wind of it since it appeared to remove the risk of a chaotic exit from the EU.
However, whatever the length of the Brexit pause, sterling will be vulnerable to signs that political intransigence is setting in now that the clock has been reset.

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Source:
Thomson Reuters IFR Markets

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