Summary:
- Boris Johnson has asked for a Brexit delay because he had to abide by the law
- France pushes for a short delay only until November 15
- GBP keeps trading at elevated levels (from a short-term perspective of course)
Although a Brexit thread has muted in recent hours, it does not mean that things have been sorted out. Currently, we are waiting for a decision from the European Union which has to decide whether to grant the UK another deadline extension or, like some people have said, “flextension” meaning the UK could be offered a flexible delay with a pre-set maximum date. There is also a possibility that a longer and not flexible extension could bring on snap elections in the UK. Meanwhile, it appears that there is no consensus among EU countries as for what to do right now. For instance, France is pushing for a tight deadline of November 15 while many other countries want to give the UK the three months it has asked for, as Bloomberg reports. It looks like the final say from the EU should be known on Friday when EU ambassadors are to discuss the length of another extension. The British pound has been doing quite well so far, except for a quick sell-off following the weekend’s events in the British parliament. Anyway, the area located in the neighborhood of 1.30 could prove to be remarkably hard nut to crack for bulls.
The GBPUSD is hovering just below its crucial resistance. Source: xStation5
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