The British pound continues to power ahead in today’s trading session after yesterday’s developments in the British parliament that many see as ending any chances of a no deal Brexit for the UK
Prime Minister Theresa May noted yesterday that lawmakers will be able to vote on a move to delay Brexit if her latest deal to ensure Britain leaves the EU at the end of March fails to gain a Majority in parliament.
Rumors are now swirling in the market that this may be a precursor for yet another vote which will give the British public another chance to vote whether they want to leave the European union.
This has seen the British pound rack up substantial gains as the threat of a no deal withers away but this brings on some unwanted side effects such as uncertainty which is going to take its toll on the British economy as Businesses are left wondering what will happen next.
So the short term benefits for the pound may be detrimental and the British currency may suffer in the long run
“While the delay helps avoid some of the consequences of an abrupt departure from the EU it also is keeping industry in a sort of limbo that doesn’t allow for long term planning and hampers a number of business decisions,” said Fiona Cincotta, senior market analyst at City Index
“Brexit could end up being delayed until 2021, which, for a lot of businesses will mean operating with one hand tied behind their backs for another two years.” She added.