Market News & Analysis

Top Story

Daily Brexit update: More nails in the coffin

Daily Brexit update: More nails in the coffin

No doubt, Theresa May’s government faces more days like Wednesday in the weeks and months ahead, as Parliament flexes its muscles. A vote demanding that Downing St release a plan within three working days of the defeat of its Withdrawal Bill on 15th January, went 308-297 against the government. Initially, the government had indicated a 21-day limit. A day before, the government lost another vote, requiring it to seek direct parliamentary approval to leave the EU without a deal if it wishes to use certain powers around raising taxes. Prospects of the big vote in about a week passing already looked slim. So, whilst talk of an eventual win by the government with another version of the bill down the line continues to echo, this week’s defeats seal the probable fate of the current Brexit bill more tightly.

How this affects our Brexit Top 10 markets:

GBP/USD: Cable flirts with its most critical nearby resistance near $1.28. It’s the region of a 31st December rejection that was followed by a sharp downdraft that bottomed at $1.243. A clear break could pave the way to $1.30s, though probabilities look sketchy given the massive risk event ahead. $1.2724 support is increasingly corroborated.

GBP/JPY: Sterling also makes progress vs. the yen. The doji forming on the charts is a problem though, and the rate has yet to get near Tuesday’s ¥139.42 reversal high.

EUR/USD: The euro continues to be bothered by weak economic data from Germany and France, but the dollar faces deeper opposition right now. Consequently, the euro has cleared long-standing $1.144 resistance. Last at $1.1538, it’s aiming for 16th October’s $1.1621 swing high.  

EUR/GBP: Alongside sterling, the market acknowledges that very recent soft Eurozone data is still being priced into the euro. Still, basic resistance around 90p is intact.

UK 100: The benchmark rallies with European markets and Wall Street on hopes of a trade deal.

Germany 30: Whilst indices slipped to lows after Washington’s statements following the conclusion of second-tier talks with China, major European markets closed above late reaction lows. Wall Street indices remain firm too.

Lloyds: Lloyds shares inched up 0.2%, taking the gain from late December lows above 10%.

Barclays: Barclays shares first lower close of the year saw a 0.3% retreat. The stock is also up about 10% from late-December doldrums.

Shell: Despite resilient oil, Shell looks to be struggling, closing below the prior day’s highs for a third consecutive day.

BP: BP rose quite in line with the FTSE’s +0.8%, rising 0.6%.


This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.

GAIN Capital Singapore Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the GAIN Capital group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), GAIN Capital Singapore Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact GAIN Capital Singapore Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.

In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither GAIN Capital Singapore Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.

GAIN Capital Singapore Pte. Ltd. is not under any obligation to update this report.

Trading CFDs and FX on margin carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit for the complete Risk Disclosure Statement.

Important Notice:

Cryptocurrencies are not legal tender currency and trading of derivatives on Cryptocurrencies are currently not covered under any regulatory regime in Singapore. Consequently, investors should be aware they do not have protection under the Securities and Futures Act (Cap. 289). Please ensure that you are fully aware of the risks.