EU signals long extension to Brexit deadline

6:58 AM 19 March 2019

Summary:

  • Pound little changed after John Bercow ruled the same May’s deal cannot be voted again during the same session
  • EU is likely to agree to extend the Brexit deadline by three or even nine months
  • RBA’s minutes do not point to a change in rates in the foreseeable future

Brexit drama continues

Start investing today or test a free demo

Open real account TRY DEMO Download mobile app Download mobile app

The British pound remains little changed on Monday after the Commons Speaker, John Bercow, ruled that the same May’s deal cannot be voted again during the same session. In practice, this means any vote this week is extremely unlikely to take place. Moreover, Prime Minister will be allowed to submit such a request to vote her Brexit agreement again only if she is able to introduce substantial changes. Bercow’s ruling has complicated a Brexit drama a bit, however, the EU’s leaders are still expected to agree to a 3-9 month extension to the Article 50. Keep in mind that the option with a 9-month extension would require the UK to hold European elections in May. The key question is what is a “substantial change” that could convince Bercow to allow to vote the May’s deal yet again. The possible scenario includes that the EU will agree to extend the deadline by 9 months on Thursday, during the European Council summit, as such a move could be considered as a “substantial change” removing the legal roadblock and allowing to vote the May’s Brexit accord (it would be a third “meaningful vote”, the previous ones were rejected by 230 and 149 votes). Needless to say, the 9-month Brexit deadline extension could not persuade Bercow, albeit the EU is likely to wait until the very last moment giving Theresa May more time to persuade him and get her deal passed through the Parliament. What will happen if May fails to convince Bercow? Not too much to be honest as the EU is reportedly likely to signal that the 9-month extension option is still on the table. The pound is little changed this morning and from a technical viewpoint the currency looks to be in a position to continue strengthening against the euro.

The EURGBP managed to stay below the supply area last week, a technical signal that bears may keep control here for longer. Another important zone to watch is placed in the vicinity of 0.8310. Source: xStation5

RBA’s minutes

The minutes released overnight offered no new information we had not already known about Australian monetary policy. The bank stressed significant uncertainties on the economic outlook presenting scenarios where might be appropriate to eventually raise or cut rates. The board agreed there was no strong case for a near-term move in rates. The bank signalled that it awaited more information to resolve a tension between the solid jobs market and soft GDP growth. Finally, the Reserve Bank of Australia admitted that a slowdown in home loans was due to softer demand as well as tighter credit conditions. Although the bank seems to present a balanced outlook for either a rate cut or a hike, the market-implied likelihood suggests 78% chance to see a rate cut by the year-end. Apart from the RBA’s minutes we also got the house price data. The index being prepared by the Australian Bureau of Statistics fell 2.4% QoQ in the last three months of the past year, a miss compared to a 2% QoQ decline expected.

Meanwhile the AUDUSD is approaching the bearish trend line after bouncing off the important demand area. Source: xStation5

In the other news:

  • New Zealand’s consumer confidence decreased to 103.8 from 109.1 in the first quarter

  • Japan’s economy minister Motegi hopes the BoJ keeps doing its utmost towards achieving the inflation aim

  • Chinese equities moves slightly lower this morning, SP500 futures point to a flat opening

Share:
Back
Xtb logo

Join over 1 000 000 XTB Group Clients from around the world

The financial instruments we offer, especially CFDs, can be highly risky. Fractional Shares (FS) is an acquired from XTB fiduciary right to fractional parts of stocks and ETFs. FS are not a separate financial instrument. The limited corporate rights are associated with FS.
This page was not created for investors residing in Brazil. This brokerage is not authorized by the Comissão de Valores Mobiliários (CVM) or the Brazilian Central Bank (BCB). The content of this page should not be characterized as an investment offer in Brazil or for investors residing in that country.
Losses can exceed deposits

We use cookies

By clicking “Accept All”, you agree to the storing of cookies on your device to enhance site navigation, analyze site usage, and assist in our marketing efforts.

This group contains cookies that are necessary for our websites to work. They take part in functionalities like language preferences, traffic distribution or keeping user session. They cannot be disabled.

Cookie name
Description
SERVERID
userBranchSymbol cc 25 October 2024
test_cookie cc 24 October 2024
adobe_unique_id cc 24 October 2025
__hssc cc 24 October 2024
SESSID cc 2 March 2024
__cf_bm cc 24 October 2024
intercom-id-iojaybix cc 21 July 2025
intercom-session-iojaybix cc 31 October 2024
xtbCookiesSettings cc 24 October 2025
TS5b68a4e1027
countryIsoCode
xtbLanguageSettings cc 24 October 2025
userPreviousBranchSymbol cc 24 October 2025
TS5b68a4e1027
intercom-device-id-iojaybix cc 21 July 2025
__cf_bm cc 24 October 2024
__cfruid
__cfruid
__cf_bm cc 24 October 2024
__cf_bm cc 24 October 2024
_cfuvid
adobe_unique_id cc 24 October 2025
_cfuvid
TS5b68a4e1027
xtbCookiesSettings cc 24 October 2025
SERVERID
TS5b68a4e1027
__hssc cc 24 October 2024
test_cookie cc 1 March 2024
__cf_bm cc 24 October 2024
_cfuvid
_cfuvid
__cf_bm cc 24 October 2024
__cf_bm cc 24 October 2024

We use tools that let us analyze the usage of our page. Such data lets us improve the user experience of our web service.

Cookie name
Description
_gid cc 9 September 2022
_gat_UA-98728395-1 cc 8 September 2022
_gat_UA-121192761-1 cc 8 September 2022
_gcl_au cc 22 January 2025
_ga_CBPL72L2EC cc 24 October 2026
_ga cc 24 October 2026
__hstc cc 22 April 2025
__hssrc
_vwo_uuid_v2 cc 25 October 2025
_ga_TC79BEJ20L cc 24 October 2026
_vwo_uuid cc 16 October 2025
_vwo_ds cc 15 November 2024
_vwo_sn cc 16 October 2024
_vis_opt_s cc 24 January 2025
_vis_opt_test_cookie
af_id cc 23 February 2025
afUserId cc 25 January 2026
af_id cc 24 January 2026
AF_SYNC cc 1 February 2024
_ga cc 24 October 2026
_gid cc 25 October 2024
_ga_CBPL72L2EC cc 24 October 2026
__hstc cc 22 April 2025
__hssrc
_ga_TC79BEJ20L cc 24 October 2026
_gcl_au cc 22 January 2025
AnalyticsSyncHistory cc 31 March 2024

This group of cookies is used to show you ads of topics that you are interested in. It also lets us monitor our marketing activities, it helps to measure the performance of our ads.

Cookie name
Description
MUID cc 18 November 2025
_omappvp cc 6 October 2035
_omappvs cc 24 October 2024
_uetsid cc 25 October 2024
_uetvid cc 18 November 2025
_fbp cc 22 January 2025
fr cc 7 December 2022
_ttp cc 22 January 2025
_tt_enable_cookie cc 22 January 2025
_ttp cc 22 January 2025
hubspotutk cc 22 April 2025
IDE cc 10 November 2025
YSC
VISITOR_INFO1_LIVE cc 22 April 2025
hubspotutk cc 22 April 2025
_omappvp cc 11 February 2035
_omappvs cc 1 March 2024
_uetsid cc 25 October 2024
_uetvid cc 18 November 2025
_ttp cc 22 January 2025
MUID cc 18 November 2025
_fbp cc 22 January 2025
_tt_enable_cookie cc 22 January 2025
_ttp cc 22 January 2025
li_sugr cc 30 May 2024
guest_id_marketing cc 24 October 2026
guest_id_ads cc 24 October 2026
guest_id cc 24 October 2026
muc_ads cc 24 October 2026
VISITOR_PRIVACY_METADATA cc 22 April 2025
MSPTC cc 18 November 2025
IDE cc 18 November 2025
MSPTC cc 18 November 2025

Cookies from this group store your preferences you gave while using the site, so that they will already be here when you visit the page after some time.

Cookie name
Description
bcookie cc 24 October 2025
lidc cc 25 October 2024
UserMatchHistory cc 31 March 2024
bscookie cc 1 March 2025
li_gc cc 22 April 2025
bcookie cc 24 October 2025
li_gc cc 22 April 2025
lidc cc 25 October 2024
personalization_id cc 24 October 2026

This page uses cookies. Cookies are files stored in your browser and are used by most websites to help personalise your web experience. For more information see our Privacy Policy You can manage cookies by clicking "Settings". If you agree to our use of cookies, click "Accept all".

Change region and language
Country of residence
Language