The British pound has lunged to the lowest level in eighteen months as there was a delay in key Brexit vote by Prime Minister Theresa May.
Hours of confusion and trying to avoid a crushing defeat, Theresa May delayed a very important vote for her Brexit deal and the pound is now suffering its consequences. When May decided to push back the debate fearing the defeat of her deal, Sterling fell by 1%. Sterling touched its lowest level in almost eighteen months after dropping 1% to 1.26 per dollar.
Around hundred Conservative MPs opposed the deal, which pushed May to delay the vote. Monex Europe FX Analyst, Simon Harvey said,
When the market thought uncertainty had finally peaked, May’s delay proves it wrong. By delaying the vote, May has all but accepted a defeat was the likely outcome and this increases uncertainty in the market.
A statement will be made by the Prime Minister soon. Around 113 Tory MPs pledged to vote against the government and most of these MPs are from opposition parties.
Source: Business Insider and One News Page