OCBC Bank: Brexit developments to pose risks for GBP

OCBC analysts are suggesting that there will be significant headline risks for the GBP this week over Brexit developments, with UK PM May looking to table another Brexit deal (largely similarly to the previously rejected deal) to Parliament for approval.

Key Quotes

“If this fails, the Parliament will vote on motions that will rule out a no-deal Brexit and an extension.”

“Note that GBP/USD risk reversals are pointing for further south & the floor at the 55-day MA  (1.2947) looks increasingly porous.”