The Brexit saga isn’t over yet.
After parliament rejected her withdrawal agreement – first on January 15th and then once more on March 12th – British Prime Minister Theresa May was hoping for yet another vote on it by March 20th. However, on March 18th, any new vote on the deal was ruled out.
The Speaker of the House of Commons, John Bercow, declared that a new vote would be possible only if significant changes were made to the text. His ruling was based on a parliamentary principle from 1604, which states that MPs cannot ask for a vote on an identical matter twice. It is now highly unlikely that Mrs. May will be able to propose a « fundamentally different » deal and bring it back to parliament before “B-Day” on March 29th.
Brussels has already ruled out any renegotiation on several occasions. What happened on March 18th suggests that British lawmakers will now seek an extension to the country’s EU membership in order to rethink the terms of the divorce. Further delay, however, will still need the approval of the 27 remaining EU members.
Political and economic risks surrounding Brexit are continuing to affect the Forex market, causing greater uncertainty and market volatility, especially on Forex currency pairs containing the GBP. This volatility should be used wisely by traders keen to take advantage of great Forex trading opportunities.
After John Bercow’s decision, sterling lost some ground. However, many analysts expect the pound to be resilient in the coming days, as leaving the EU without a deal has been ruled out by parliament, albeit in a non-binding vote. This week will be a very busy one for sterling, as the Bank of England will announce its decisions on monetary policy and numerous important statistics will be released.
When investing in the Forex market, you should always be aware of events that can affect your trading performance by triggering higher volatility. For this reason, you should monitor a good economic calendar, so you’ll be ready for anything that could impact your Forex trading positions.