Although a no-deal Brexit is temporarily avoided, the delay in Brexit will create additional uncertainty in the trading landscape. GBP/AUD could head lower.
- PM Boris Johnson suffered another major Commons defeat after his plan to rush the Brexit deal into law was blocked by the members of Parliament.
- PM Johnson will most likely push for a general election instead of trying to get his deal through.
- He mentioned that he will pull the bill altogether and seek an election if the MPs do not go along with his fast-track timetable.
- However, the Parliament approved his new Brexit deal, something Theresa May never managed. Though Parliament rejected his plan to fast-track the deal, the odds of a no-deal Brexit have since largely faded.
- For now, we could see a temporary sell-down in sterling after rising close to 2% for the past one month.
- GBP/AUD seemed to have bounced off its resistance and could fall lower towards the 1.8500 price level.
Fullerton Markets Research Team
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