Forex – Pound Edges Up Even After May’s Brexit Deal Suffers Another Defeat


© Reuters.

Investing.com – The British Pound edged up on Wednesday in Asia even after U.K. Prime Minister Theresa May’s Brexit deal suffered another defeat in Parliament.

The defeat brought fresh uncertainties and dealt a further blow to the chances of an orderly Brexit.

The pair stabilised on Wednesday despite the news, after losing about 0.7% the previous day. The pair last traded at 1.3083 by 11:41 PM ET (03:41 GMT), up 0.1%.

Joseph Capurso, senior currency strategist at the Commonwealth Bank of Australia, wrote in a Wednesday morning note that if U.K. lawmakers voted to leave the European Union without a deal, the pound could fall as much as 4 to 8%.

Lawmakers are set to vote again this week to decide on a “no-deal” exit plan, or whether to extend the March 29 departure date.

“The Parliament is likely to reject a ‘no-deal Brexit’ plan, and the March 29 exit date subsequently being extended now looks to be a distinct possibility,” said Takuya Kanda, general manager at Gaitame.Com Research Institute, in a Reuters report.

Meanwhile, the pair extended losses after both the National Bank of Australia (NAB)’s and for February missed estimates.

The that tracks the greenback against a basket of other currencies edged up 0.1% to 96.968. The dollar traded lower on Tuesday as tame U.S. affirmed expectations the Federal Reserve will continue to hold off raising interest rates.

The pair was up 0.1% to 6.7094. The People’s Bank of China (PBOC) set the yuan reference rate at 6.7114 vs the previous day’s fix of 6.7128.

The pair slipped 0.1% to 111.27.

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