The Pound Sterling continues to slide and moved close to a 3-month trough versus the common currency Euro as FX traders await the Brexit vote in the British Parliament. The latest poll suggests that the Prime Minister is unlikely to have enough votes to push her proposal through. With the March 28, 2019 deadline looming, the only point of light that investors are clinging to at this point is the prospect that Britain might decide unilaterally to reverse the decision to withdraw from the European Union. Earlier today, the highest court in the European Union confirmed that the British government does have that right.
As reported at 11:08 am (GMT) in London, the EUR/GBP was trading at 0.8983 Pence, a gain of 0.40%; the pair earlier hit a peak of 0.89873 Pence while the low is recorded at 0.89297 Pence. The GBP/USD was trading at $1,.2705, down 0.19% and off the session low of $1.2692.
Miracle for May Unlikely
Analysts say that the Pound's fate in the near term will depend on how soundly Theresa May is beaten in the vote. A close defeat, say by fewer than 50 votes, would likely result in heavy volatility for the Pound,. Meanwhile, a Parliamentary defeat or 100 votes or more would send the Pound spiraling lower, which one currency strategist believes would push the GBP/USD pair to below $1.20. The latest poll suggests that there is little doubt in the minds of analysts and economists that the Prime Minister will fail at this task.