Forex – Sterling Drifts Lower as May Prepares 3rd Brexit Voting

FxPremiere.com – The British pound is drifting lower vs the dollar and euro early Friday in Europe, consolidating this week’s gains as the market takes stock of a tumultuous few days in the Brexit process.

Prime Minister Ms Theresa May is preparing to ask law-makers to vote on her defeated Withdrawal Agreement with the EU for a third time. She’s hoping to convince die-hard Brexiteer’s in her own party.

Forex Sterling Drifts Lower as May Prepares 3rd Brexit Voting
Forex Sterling Drifts Lower as May Prepares 3rd Brexit Voting

May’s government held on to control of the Brexit process by a whisker Wednesday, defeating by only three votes a motion that would have let parliament take control. As such, most analysts still see her deal – or a rough version of it – as the most likely outcome, even if it comes with a slight delay.

However, ‘no-deal Brexit’ is still the legal default option, meaning that that tail risk still exists, unless the EU changes its stance. Versus that backdrop, the pound is set to end the week around 1.1% higher against the euro and over 2.2% higher versus the US dollar.

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