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Pound gains despite postponement of Brexit deal vote

By Alexander Bueso

Date: Monday 21 Oct 2019

Pound gains despite postponement of Brexit deal vote

(Sharecast News) - The pound was unfazed by the Speaker of the House, John Bercow's, decision not to allow a "meaningful vote" on the Prime Minister's Brexit proposal to go ahead on Monday, as some observers had correctly anticipated.
Nonetheless, the government's withdrawal bill was expected to be voted on the next day amid speculation that it might indeed make it through the House of Commons.

"There is a growing expectation that this bill will pass tomorrow and therefore we could be set for further upside in the pound, with the latest positioning data still suggesting an elevated level of shorts that may be forced to cover in the event of a market positive outcome," said David Cheetham, chief market analyst at XTB.

"There is a growing expectation that this bill will pass tomorrow and therefore we could be set for further upside in the pound, with the latest positioning data still suggesting an elevated level of shorts that may be forced to cover in the event of a market positive outcome."

Bercow justified his decision on the basis that the Letwin amendment "explicitly specified that the legislation should come first".

"Nothing in what I have said, in any way impinges upon the opportunity for the government to secure approval of its deal," Bercow added.

"[It's] "not for the Speaker to interfere [and makes] no apology [for his decision]."

As of 1632 BST, the pound was adding 0.27% to 1.1652 against the European single currency and trading just off its best level of the session.

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