SMM News: with the Brexit incident twists and turns, the trend of sterling also jumped up and down.
In early European trading on Tuesday, May 21, the pound fell below the 1.27 mark and fell about 30 points on the day, breaking its lowest level since January 15. As of May 20, sterling had fallen 11 days against the euro, the longest straight decline since December 2000, amid fears that the UK was sliding towards disorderly Brexit.
At about 20:00 in Beijing time, the pound reversed and stopped falling, pulling 40 points against the dollar in the short term, rising as high as above 1.2740, up about 9 points in the day, and the pound also rose more than 10:00 against the euro in the short term to recover from the intraday decline. At the time, it was reported that British Prime Minister May was scheduled to speak on the new proposal for the Brexit agreement at 23:00 Beijing time, and a spokesman for the British Prime Minister confirmed that the government cabinet had discussed the new Brexit agreement to be submitted to Parliament.
Nearly 23:00 Beijing time, ahead of the British government's latest Brexit motion, the pound rose rapidly against the dollar, rising 70 points in the short term to hit 1.2812, or above 1.28, rising more than 0.5 per cent in the day.
Meanwhile, the two-year yield rose 4 basis points to a new high of 0.761 per cent since May 7. The euro rose 40 points to 1.1177 against the dollar, while the dollar index dived 25 points to refresh its daily low of 97.81. British Prime Minister May is expected to give parliament a free vote on the second Brexit referendum, according to Bloomberg.
At 23:00 Beijing time on the 21st, May announced a new version of the government's Brexit agreement, which will be submitted to the House of Commons for vote on June 3, offering compromises on the protection of workers' rights, environmental protection, Irish reserve provisions and customs arrangements. It is hoped that closer customs ties with the European Union will win the support of the opposition Labour Party and the parliamentary remain.
However, the media found that the May government allowed the British Parliament to hold a free vote on whether the second referendum can be held on the premise that Parliament must first pass the government version of the Brexit agreement; However, the compromise offered by the new agreement is not enough to satisfy both inside and outside the Conservative Party, and even Tory bigwigs who support Brexit believe that May's latest Brexit proposal is "worse than the previous one." The leader of the opposition Labour Party also said the latest agreement could not change their opposition decision.
Sterling gave up all its gains against the dollar around 00:30 Beijing time on the 22nd, falling nearly 90 points in more than an hour to 1.2728, narrowing to 0.02 per cent in the day. Gilts yields have also fallen again, marking a resurgence of risk aversion in the market.
Morgan Stanley's previous foreign exchange trading strategy was to sell pounds and buy euros. The bank said any stabilization of the pound would not last long and was likely to fall further in the coming weeks. The market believes that negotiations between the Conservative Party and Labour have failed to make progress, and the uncertainty created by the government's announcement of a fourth vote on the Brexit deal in June is likely to continue to put pressure on the pound.
There is a lack of further information on Brexit for the time being, and markets are still inclined to believe that Prime Minister Theresa May's Brexit deal, which parliament has vetoed three times, is still difficult to pass.
On the 19th, British Prime Minister May wrote in the Sunday Times that she would propose "bold new conditions" to members of the House of Commons for the withdrawal Agreement Bill, which was submitted to the British Parliament for consideration and vote in early June. The bill contains a "package of improved measures" and "believes it will win new support". The move is seen as a last-ditch effort by May to push for Britain's withdrawal from the European Union.
May is scheduled to hold a cabinet meeting on May 21 to determine the "package of measures" contained in the bill.
On Thursday, British Prime Minister May announced that whether or not the Brexit agreement can be passed by Parliament on June 3, she will give a specific date for her departure and agree on the election schedule for the new leader of the Conservative Party. Bloomberg reported on the 19th that a fierce battle for leadership within the Conservative Party has taken place.
"[investment must see] Trade friction news flying all over the metal how to win in chaos?
"Click to enter the registration page
Scan QR code and apply to join SMM metal exchange group, please indicate company + name + main business