Art Cashin: Stabilization Of The British Pound Is Wednesday's 'Big Event Of The Day'

After suffering four straight days of decline, the British pound rebounded Wednesday by around 1 percent at the $1.225 level. According to UBS' Art Cashin, the "stabilization" seen in the pound could be seen as Wednesday's "big event of the day."

Speaking as a guest as on CNBC, Cashin pointed out that the pound is now trading above its 100-day moving average of around $1.2138 after the UK's Prime Minister Theresa May "somewhat reluctantly" opened up the parliament to debate the government's Brexit position.

Cashin noted that the UK parliament is a lot more dovish than May is and there may even be a court challenge to explore if May needs parliament's permission in the form of a vote to proceed with any official Brexit negotiations.

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Cashin said European markets were calmer on Wednesday following May's announcement and the rebound in the pound.

Finally, Cashin also pointed out that global markets are vulnerable to other ongoing events, including the move in oil and the "jack-in-the-box political events," namely the U.S. election and Donald Trump's rhetoric that he is "unshackled."