The Pound Sterling struck a 1-week trough versus the US Dollar as the Prime Minister works out a legislative plan that would enable Britain to leave the European Union. On Monday, a 3-day debate began to discuss the law and implementation plans that would trigger the Brexit after which a series of votes could attach additional conditions to the plans, talks for which will begin at the end of next month. Though there is general agreement in principle for the new law, there are some dissensions among the Conservative Party which might mean an amended bill that could, ultimately, damage the Prime Minister’s authority during negotiations with the EU.
As reported at 10:20 am (GMT) in London, the GBP/USD was trading at $1.2371, down 0.77%; the pair has ranged from a low of $1.2348 to a peak of $1.2487 in today’s trading session. The EUR/GBP was trading flat at 0.8619 Pence; the pair’s daily range was from a low of 0.8585 Pence to a peak of 0.8635 pence.
Brexit Talks Inching Toward Chaos
Theresa May has warned UK lawmakers that the voters’ will should not be obstructed; she further said that the UK Parliament could either take the deal she’s already negotiated with the EU or reject it without any agreement on trade or immigration issues. UK lawmakers want more options and more influence, but one currency strategist in Hong Kong says that any debate raises the likelihood of a chaotic outcome which could dampen investment enthusiasm. In turn, that would make it more difficult for the government to fund its deficit and put more pressure on the Pound Sterling in the long run.
