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Pound Drifts Lower As Indicative Votes Fail To Find A Majority

Published 27/03/2019, 22:44

As was widely expected, the series of indicative votes has failed to find a clear majority for an alternative Brexit path to May’s current deal but that’s not to say the exercise was a complete waste of time.

Two options, a confirmatory referendum and a customs union both received a greater number of votes than the PM’s deal on its last sitting but they still fell a fair way short of the support needed.

Once more, parliament has proven that is struggling to agree on anything other than what MPs don’t want, and there remains a lingering concern that we could drift into a no-deal Brexit by accident - an outcome which presents the greatest downside risk to the pound.

Not long before the results were announced a rise in support for May’s deal amongst prominent Tory opponents was nipped in the bud when the DUP effectively ruled out their support.

The pound drifted down to its lowest level of the day as these events unfolded and where this leaves us now is anyone’s guess. It was almost a side-story that MPs voted to extend the Article 50 deadline to April 12th - but this date could now become one to watch closely as the default now becomes a no-deal exit then.

Latest comments

My guess is that it will drift downwards until there is a clearer picture.... Markets dislike uncertainty and with April 12th now being No Deal by default this isn't good news for the pound.
Whatu0027s next now, is pound likely to hit yesterday high of the day 1.871...or is it going to keep coming down? your prediction please!
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