Pound Recovers After Another May Brexit Defeat

The Pound Sterling gained positive momentum after Tuesday's Parliamentary defeat of the Prime Minister's latest Brexit-related proposal. With another vote still ahead later in the trading day, market uncertainty continues to be the norm for Sterling traders. With the deadline for the withdrawal fast approaching, last ditch efforts include today's vote which is simply a yes or no to leaving the European Union without a deal in place. If Parliament decides to vote against a no-deal exit, a vote will be called on Thursday to determine whether or not to extend the deadline. The Prime Minister has called for a “free vote,” which will allow the lawmakers to vote their conscience, which may not necessarily be the party-line vote.

As reported at 6:26 am (GMT) in London, the GBP/USD was trading higher at $1.3091, a gain of 0.1285%; the pair is moving away from the low of $1.3063 and edging toward the session peak of $1.3092. The EUR/GBP is trading lower at 0.862 Pence, down 0.146%; the pair is well off the session high of 0.86399 Pence.

Postponement Not a Certainty

Analysts say that they expect the vote to come out against the no-deal plan, which will allow for the vote on a postponement. Those expectations have helped to quell market concerns and allow for some stabilization of the GBP/USD pair. The member nations of the European Union would still have to agree to the Brexit delay, however, and that decision won't be made until the conclusion of the EU summit which will take place within the next two weeks.

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.