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British Pound Falls Ahead of UK Article 50 Extension Vote

March 14, 2019 at 17:02 by Simon Mugo

Many 20-pound notesThe British pound today fell from intra-day lows against the US dollar as investors awaited the crucial vote on a second Brexit referendum. The GBP/USD currency pair yesterday rallied to multi-month highs after UK leaders voted to take a no-deal scenario off the table.

The GBP/USD currency pair today dropped from an intra-day high of 1.3329 to a low of 1.3207 before retracing some of its losses.

The pair headed lower shortly after yesterday’s vote as investors took profits after the massive spike higher. The pair’s decline persisted into the Asian session as the Brexit process was thrown into disarray. The cable rallied briefly into the early European session amid rumors that the Northern Irish DUP was thinking of supporting the government’s Brexit deal. The uncertainty around the extension period weighed on the cable as Donald Tusk the European Council President pushed for a longer extension, while Theresa May was pushing for a shorter delay period. Lack of support for a second Brexit referendum by the UK’s Labour Party and President Donald Trump also weighed on the pair during the American session.

The release of weak US initial jobless claims data by the Department of Labor did not boost the pair. The weak US new homes sales data for January released by Census Bureau also had a muted impact on the currency pair.

The currency pair’s short-term performance is likely to be influenced by the outcome of the Article 50 extension vote scheduled for 17:00 GMT.

The GBP/USD currency pair was trading at 1.3270 as at 16:58 GMT having dropped from a high of 1.3329. The GBP/JPY currency pair was trading at 148.27 having risen from a low of 147.39.

If you have any questions, comments, or opinions regarding the Great Britain Pound, feel free to post them using the commentary form below.

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