Rand softer as traders brace for possible pound volatility
The local currency tracked the euro weaker, while markets prepare for possible currency swings as UK MPs vote on Brexit tonight
The rand was a little softer against major global currencies on Tuesday afternoon, tracking a slightly weaker euro, ahead of what might be a volatile overnight session. All eyes are on a looming vote on UK Prime Minister Theresa May’s draft Brexit deal, which will begin at 9pm SA time. May requires support from 320 MPs out of 649, and, if defeated, the margin will be important. Some analysts maintain a slim defeat could even be pound positive, as it could point to the possibility of successful second vote, if further concessions are first won from Brussels. “We’ve seen some decent gains in the pound over the past 48 hours or so on the back of the assurances provided by the EU and suggestions that some eurosceptics are planning to back her deal,” said Oanda analyst Craig Erlam. Even a defeat would not completely kill May’s deal, but could put impetus behind a no-confidence vote in her leadership, and bolster calls for a second referendum. At 2pm the rand was 0.42% weaker at R13.8207 ...
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