GBP/USD Takes A Dive On Two Brexit Spillovers
The British pound has the Monday blues, dipping under 1.24 as worries over Brexit weigh. The low so far has been 1.2390. The swing low of 1.2350 is the next level of support, followed only by 1.2250.
The British House of Commons easily passed the Brexit Bill, but not everything is going so smoothly ahead of the self-imposed end-of-March deadline to trigger Article 50.
Scotland, which rejected independence in September 2014, is considering a second referendum. Many Scots voted to stay in the United Kingdom due to the fact that the UK is part of the European Union. Talk about a second referendum was heard well before the EU Referendum in June 2016 and it became louder afterward.
What’s new now? According to reports, UK PM Theresa May is aware of a Scottish attempt to push this agenda forward and is ready to grant it. Further uncertainty is not helpful for the pound.
In addition, other reports talked about ending free movement of EU nationals immediately. The announcement and the cut-off date will come alongside the official announcement of Article 50.
More: ‘The Great Le Pen Scare’: How Could EUR, GBP React Afterwards? – Danske
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