The Pound Sterling edged off the recently struck 1-week peak while the Prime Minister holds out all hope that her amendment proposals to the European Commission will have been approved. Theresa May is also hoping to persuade her own Parliamentarians to modify the proposed plans or else risk crashing out of the trading bloc without a deal in place on March 28th. The main sticking point is the issue of the border deal between Northern Ireland (a British province) and Ireland (an EU member). Concerns over the arrangements which have been called cumbersome and extensive are weighing on Sterling.
As reported at 11:08 am (GMT) in London, the GBP/USD was trading at $1.3015, down 0.3331% and off the session trough of $1.3012 while the high was recorded at $1.3077. The EUR/GBP is trading at 0.8713 Pence, up 0.3779%; the pair earlier hit a high of 0.87144 while the low was recorded at 0.86770 Pence.
Short-term Outlook Shaky
Movement in derivatives markets are suggesting that the Pound's near-term outlook is shaky at best. Pressure will continue to be place on the Prime Minister to find a solution that will benefit consumers and businesses alike. News this week that a Honda manufacturing plant based in Britain intends to close its doors has only heaped on the pressure. Investors are doubtful that the Prime Minister will be able to eke out a win with Parliament so heavily divided.