European Markets: Sterling drops as reports on Brexit vote crises

March 11, 2019 | Monday

European Economy


On Monday, sterling drops as traders react on different media reports before the start of Brexit vote this week. In particular, a report says Prime Minister Theresa May might change the voting schedule for Tuesday evening.

Meanwhile, pound started falling to its three-week low against the dollar upon reports regarding the plan of Prime Minister Theresa May to change the voting scheduled on Tuesday night.

Elsewhere, the United Kingdom leader expects to hold a second of "meaningful" vote on her Brexit retreat agreement. That was after the first back during January, when she sees her plans getting a rejection from a large majority within the U.K. lawmakers.

However, a certain tabloid which is most read within the country says that the prime minister is pushed to depreciate votes to make the event purely symbolic. As a result of the events, sterling drops at about 1.296 versus the greenback during 9:30 in the morning (London time) upon its trading nears $1.301.

Furthermore, shortly a pro-Remain lawmaker, Yvette Cooper od the opposition Labour party says the U.K Parliament could have control of Brexit whenever May fails to look for a consensus with her vote on Tuesday. Consequently, the pound increase on the comments, going up to $1.300.

During Midday (London time), British currency increases again upon the prime minister's spokesperson confirms that Tuesday's voting schedule will continue and won't change. As a result, sterling reaches its session high, $1.3034.

Moreover, the prime minister agrees on a draft withdrawal deal with Brussels. It is to set terms in which the U.K. is to leave the bloc. In connection to other things, that includes the money owed, treatment on the citizens, and what happens on the land border among EU-member, the Republic of Ireland, and U.K. ruled Northern Ireland.

Meanwhile, U.K Parliament needs to approve the terms on the first "meaningful vote," during January, in which lawmakers rejects the 585-paged treaty. The dissatisfactions are mostly centered in the safety net arrangement they called the "Irish backstop." That of which is hated by Eurosceptic lawmakers, fearing that it could trap the U.K. towards endless custom union with Europe.


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