The GBP/USD exchange rate saw negative territories in this Monday’s trading. The fall is a rough way for the pound sterling to start of the week.
News about the prime minister’s Brexit proposal delay caused the pound to lose some of its five-month high gains. The British Parliament postponed the crucial vote of the British Prime Minister Boris Johnson’s Brexit proposal.
Last Saturday, UK lawmakers decided to withhold BPM Johnson’s deal. The move is said to push the BPM to seek from the European Union a third postponement for the Brexit date.
The GBP/USD exchange rate fell 0.32% or 0.0041 points in today’s trading sessions. The GBP USD pair currently trades for $1.2930, edging lower compared to its previous close of $1.2971.
However, the loss of the GBP/USD exchange rate was capped as traders still believe that a no-deal Brexit will be avoided. Despite the unexpected delay, experts are still confident about a possible Brexit deal.
British Foreign Secretary Dominic Raad also expressed his confidence and trust in British lawmakers in an interview.
The Fate of the Pound
Its crunch time for British Prime Minister Boris Johnson after his Brexit plans were somehow “derailed” by the UK Parliament. After negotiating a Brexit deal with the bloc last week, people believed that the British Prime Minister could really pull it off.
The only remaining obstacle ahead of the BPM Johnson’s plan was the supposed vote by the UK Parliament.
With that chaotic scene in the geopolitical realm, the pound has continued to take beatings from the news. However, the recent developments this month supported the exhausted British pound currency.
One of the most prominent trading pair that continues to take the spotlight in forex sessions is the GBP/USD exchange rate. As soon as the month started, the pair showed an impressive run as it receives support from Brexit news.
Analysts still believe that the future of the pair could go both ways as things are never certain. However, more and more traders believe that the pair has a bright standing in the long run.