New Brexit Rumors Hit Sterling

The Pound Sterling moved lower on a media report which said that Theresa May may change tomorrow's critical Parliamentary Brexit vote. According to the Sun Newspaper, anonymous sources have said that the Prime Minister is likely to call for a “provisional vote” on the Brexit, rather than one which would have been more meaningful and decisive. The “meaningful” vote that Parliamentarians are expected to make would have been on the Prime Minister's withdrawal agreement with Brussels which had been negotiated last year but rejected last month. That has left FX traders with concerns that a hard Brexit is still a possibility.

As reported at 10:40 am (GMT) in London, the GBP/USD was trading lower at $1.3008, down 0.04% and off the session trough of $1.2952; the pair's peak was recorded at $1.3018. The EUR/GBP was trading higher at 0.8644 Pence, a gain of 0.1599%; the pair has ranged from a low of 0.86147 Pence to a high of 0.86760 Pence in today's trading session.

Parliamentary Voting Ahead

If Theresa May does not get a favorable outcome during Tuesday's voting, another will take place the following day with emphasis on the question of leaving the European Union without a Brexit deal. As of this writing, most Parliamentarians are expected to vote against a no-deal outcome. Finally, a third vote could take place on Thursday which would require the UK government to formally request a limited extension from the EU, to extend beyond the looming March 29th deadline.

Barbara Zigah is a freelance journalist living in Ghana, who specializes in Forex-related content; her online work has appeared in the IB Times, NASDAQ, Benzinga, and Seeking Alpha.