The UK currency dropped sharply Tuesday after legal advice from a key government official poured buckets of cold water on the latest version of the Brexit agreement negotiated by Prime Minister Theresa May with the European Union.
The advice increases the risk that UK lawmakers will reject the deal for a second time in a vote expected at 3:00 p.m. ET.
If that happens, there's a greater chance that Britain will crash out of the European Union without a deal — doing big damage to the economy — or that Brexit will be delayed, prolonging the uncertainty for business.
Investors reacted to the developments by pushing the pound down as low as $1.30, a negative swing of 1.7% from levels near $1.32 reached on Monday.
The United Kingdom is scheduled to leave the European Union on March 29.
There was increased optimism on Monday that May would be able to secure concessions from the European Union that would make her deal more attractive to members of parliament.
May returned from negotiations with EU officials with assurances that could help Britain avoid becoming stuck in a permanent customs union with the European Union, an outcome many Brexit supporters will not accept.
But the government's chief legal adviser, Geoffrey Cox, said Tuesday the concessions secured by May don't deliver a fundamental legal change from the previous draft of the agreement.
Bagikan Berita Ini
0 Response to "The pound's make or break moment is getting closer"
Post a Comment