The Pound remains nervous. Overview for 13.03.2019

GBPUSD is still extremely sensitive to the Brexit talks; the pair remains highly volatile.

The British Pound is going through hard times these days, but investors are still hoping for a positive outcome in the Brexit talks. The current quote for the instrument is 1.3097.

The key highlight for the currency market right now is what is happening in the United Kingdom these days. Early in the week, the British Prime Minister Theresa May “unscrambled scrambled eggs”, in other words, she did what everyone thought it would be impossible to do, which is convincing the entire European Commission and the European Union Brexit Negotiator Jean-Claude Juncker personally to accept and legally approve all amendments to the Brexit agreement. After that, May returned to London to wait for British policymakers to make a final decision after a great deal of fights and discussions. 

So, last night the British Parliament voted on the agreement. The Prime Minister was disappointed as policymakers once again rejected the deal, 391 against 242, meaning there going to be another vote on the “tough” Brexit scenario in the House of Commons today. Most probably, the Brexit will start as scheduled from the very beginning, on March 29th, but without any trade agreements between the United Kingdom and the European Union. This scenario is surely very negative and disastrous for the British economy. 

In the afternoon, the UK will publish the Annual Budget Release, but the Pound is not expected to respond to the report a lot. The most interesting, exciting, and frightening news is still connected to the Brexit. 

The Pound was very volatile yesterday, just as expected, and closed the trading session at 1.3070. However, today the pair is trading a bit higher.