Pound exchange rates fall on Brexit woes

Pound exchange rates have fallen sharply today following rumours that the European Research Group (ERG) will vote against Prime Minister Theresa May’s Brexit proposal tonight.

MPs will vote later on whether they still support the government’s approach that they backed in a vote last month and the Brexit Secretary Stephen Barclay has come under fire for refusing to rule out a no-deal Brexit. Brexiteers are unhappy with the motion because they say it implies support for ruling out a no-deal Brexit.

Tonight’s events are not expected to be set in stone as Mrs May has promised lawmakers will get another chance to express their opinion on the 27th February.

Why has the pound fallen?

With only six weeks to go until the UK is to officially leave the European Union on the 29th March markets are concerned the risk of a ‘no deal’ Brexit is becoming more and more apparent. It is this risk that has caused the pound to fall.

Tonight a number of amendments will be voted for, inclusive of one that calls for a second referendum. Analysts believe that if Mrs May did open the door for a second referendum then the pound could bounce significantly. Either way it is likely the pound will see some volatility in the next six weeks.

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