British Pound slide as UK Ministers delay Brexit vote yet again

On Monday, overnight losses were erased by British pound against US dollar due to optimism that the prime minister of UK might pass Brexitdeal through the Parliament. Initially, a slight slip was noticed in the currency but then it got inside of positive territory, even greater than $1.30, which is considered as highest touch in the last five-and-a-half-month.

On Saturday the move created complexity for Brexit, as a group of cross-party politicians thwarted Johnson and voted so that the meaningful vote could get postponed and they force Brussels to provide an extension on the current Brexit deadline which was on October 31.

Back on Saturday Johnson appealed for extension on the deadline but the leaders of European Union did not accept it. During the present week, it is expected that one might witness government presenting full bill on Withdrawal Agreement and it will try so that it can pass through the chambers viz. House of Lords and House of Commons. Lawmakers will provide their decisive vote by the end of the week.

Though Johnson lost the vote back on Saturday, experts are still stating that Brexit dealing is going in the positive direction. As per one of the analysts at Deutsche Bank Brexit resolution’s outlook is still constructive and explained that Saturday’s voting makeup meant that the Prime Minister of UK could get enough support for dealing.

Currently, the probability of no-deal Brexit lowered by Goldman Sachs to 5%, earlier it was 10%. It maintains the view that UK will exit the block right on time i.e. October 31. One of the analysts stated that it is very imperative for UK to exit European Union in well-organized fashion. Right after votes casted on Sunday no-deal chances are lower.

In 2016, before referendum the trading of sterling versus dollar was near about 1.50, but it then plummeted around$1.29 after clearing of the results. Then it spent several months pushing lower and got broken even below $1.20 during few occasions.

Related Posts

Leave a Reply

Your email address will not be published. Required fields are marked *