MUFG Research discusses GBP/USD outlook ahead of the vote on the 'Yvette Cooper' Amendment in the UK parliament.
"The “Yvette Cooper” amendment is judged as potentially the most important attempt by parliament to prevent a “No Deal” Brexit. The amendment would force the government to request an extension to Article 50 until the end of 2019 if the government is unable to reach an acceptable Brexit agreement with parliament by the 26th February," MUFG notes.
"The amended is expected to just pass although it will be close. If passed, the pound could strengthen further lifting cable towards the 1.3300-level.
In contrast, there would be disappointment if the amendment fails which could result in cable falling back towards the 200-day moving average at 1.3050," MUFG argues.