FX Update: The pound has traded firmer
FX Update: The pound has traded firmer in the wake of the EU granting an extension in the Brexit process. A two-week delay has been stimulated for UK Prime Minister May to get her deal through Parliament or come up with another plan. If the PM's deal is passed, then the UK would have until to May 22 to get the necessary withdrawal legislation done before exiting the EU. Things remain fluid, though one thing is certain is that March 29 has ceased to be Brexit day. A third vote on May's deal, if it happens, would be hard to call. The EU is not likely to make the concessions on the Irish backstop which the DUP and at least 20 of the hardline Brexiteers in the Tory party demand, but faced with the likelihood of Parliament taking control of the Brexit process, they conceivably could be persuaded. The Brexit extension will also buy buy time for Parliament -- which is by significant majority staunchly against a no-deal scenario -- to wrest control of the Brexit process, which would all by wipe out the risk for a no-deal scenario. There is already a motion that would allow this tabled for Monday. Cable has settled near 1.3150 after recovering from yesterday's 1.3004 low. Elsewhere, EUR-USD corrected yesterday following a run of eight consecutive up days. The upward run culminated in a six-week peak at 1.1448, with the pair having now settled in the upper 1.1300s after printing a correction low at 1.1342. The 4 bp drop in Bund yields yesterday, which hit 28-month lows, weighed on the euro. USD-JPY has been entrenched in a narrow range of less than 20 pips, centred on 110.75.