The Labour Party has agreed to support the bill, under which UK will go to new elections in early December. As a result, the pound has moved higher, pushing EURGBP to new weekly lows.
The leader of Labour party, Jeremy Corbyn, announced that “condition of taking a no-deal Brexit off the table had now been met after the EU agreed to extend the deadline until 31 January 2020,” and the party will support the idea of early general elections.
“I have consistently said that we are ready for an election and our support is subject to a no-deal Brexit being off the table.
“We have now heard from the EU that the extension of Article 50 to 31 January has been confirmed, so for the next three months, our condition of taking no-deal off the table has now been met,” added Corbyn.
The pound has moved around 30 pips higher against the USD and 20 pips higher against the EUR. EURGBP, specifically, has hit new weekly lows of 0.8610 as it continues to trade in a tight range. It is currently stuck between two horizontal levels – $0.8700 upside and $0.8575 downside.Download our latest quarterly market outlook for our longer-term trade ideas.