The Pound is recovering. Overview for 18.12.2018

On Tuesday, GBPUSD is trading upwards; the Pound has time to reach stability. 

The British Pound is slowly recovering against the USD on Tuesday. The current quote for the instrument is 1.2632. 

The key catalyst that helped the Pound to reach stability was the same: the voting in the British Parliament on the Brexit agreement. It became known yesterday that the voting that was cancelled a week ago would take place on January 14th 2019. Investors are wondering what strategy Theresa May has this time, because on December 11th she cancelled the voting due to poor support for her Brexit strategy from the Parliament. When cancelling the voting, May once again described all possible solutions and options the British policymakers had: the problem would be solved according to either the “soft” scenario by signing the Brexit agreement with the European Union or the “tough” one, without any agreements, which would be very harmful to the British economy.

At the same time, after learning the new voting date, the Labor Party said that it would be unacceptable. Just to remind you that the Labor Party is in opposition to May’s governing party. The Labor party once again offered a vote of no confidence in the Prime Minister, although the confidence was confirmed last week. In other words, instead of anticipating Christmas holidays, the British policymakers are too busy causing Theresa May problems.

It’s quite unclear whether this new vote of no confidence in Theresa May continues and when it may take place. Meanwhile, the Pound is paying no attention to such small details and trying to recover before more significant catalysts appear