The Pound lost approximately 1% of its value, in relation to the US Dollar, following yesterday’s votes in the British parliament. Lawmakers delivered a mixed verdict, approving the Brexit withdrawal bill but rejecting the government’s proposed timetable for its implementation, meaning that almost certainly there will be a new Brexit extension.
The markets reacted negatively to this latest delay, because it means more uncertainty, with the likelihood of a UK general election before the end of the year. However, Pound losses were only a fraction of the gains accrued during the last 10 days, meaning the markets still believe a negotiated Brexit to be the most likely outcome for the process.
