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Pound rebounds after a tumble on May's Brexit deal vote being blocked

Lianna Brinded
Head of Yahoo Finance UK
Chart: Yahoo Finance

The pound erased some of its losses against the US dollar (GBPUSD=X) after tumbling in the wake of parliament speaker John Bercow officially blocking prime minister Theresa May from having another vote on her Brexit deal.

The pound rose by 0.2% in early trading local time, keeping its head above water at the $1.32 level, where the currency trade seems to stabilise in between volatile swings.

Chart: Yahoo Finance

Late Monday afternoon, Bercow blocked May from putting her Brexit deal in front of parliament for a third meaningful vote — dubbed “MV3” — this week. He said the “government cannot legitimately … resubmit to the House [of Commons] the same proposition or substantially the same proposition as that of last week.”

May has already tried to pass her Brexit deal twice in parliament — the first in January and again on 12 March. Both were voted down by large margins and it looks like the third attempt would have been voted down as well, according to a range of analyst notes that Yahoo Finance UK looked at.

UK chancellor Philip Hammond warned over the weekend that it is now “physically impossible” for the UK to leave the European Union on the original 29 March, 2019 Brexit date.