Sterling drops as Brexit concerns escalate

Sterling hit 3-month lows in the second week of May ahead of next months vote on Brexit. The uncertainty is generating unwanted volatility which is affecting many UK assets, which can be followed on iFOREX index trading. Stock prices have also been on the defensive. Yields have been falling which has put additional pressure on the currency. It appears that parliament members on both sides of the Brexit issue have committed to vote down Theresa May’s withdrawal agreement.

Voting no on Withdrawal Agreement

As it stands, MP’s are planning to vote no to Theresa May’s withdrawal agreement. The vote is scheduled to occur in early June and ministers on both sides are expected to vote no.

May said that the Brexit legislation and the withdrawal bill could be scheduled for the week beginning June 3, 2019 as it is key for the UK to leave the EU before the summer parliamentary recess begins.

At the same time, discussions with members of the Labour party continue. In fact, May met with the leader of the Labour party Jeremy Corbyn this week but not progress was made toward a mutual agreement between the two parties. The Labour party is backed by the Liberal Democrat MPs who say they will vote no to any agreement unless a new referendum is attached. Many in the Liberal Democrat party believe that the government is running out of options. Liberal Democrats will not be complicit in a botched version of the Brexit without letting the public having a final say with another referendum.

The Scottish National party’s Westminster leader, Ian Blackford, also reiterated that the bill will be voted down without a referendum.