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Pound falls against the Swiss franc owing to third meaningful vote uncertainty

Pound falls against the Swiss franc owing to third meaningful vote uncertainty

The pound has once again felt the impact of the uncertainty caused by Brexit and the pound has fallen against the Swiss franc during yesterday afternoon’s trading session.

We are now just over a week away from when the UK is due to leave the European Union and the latest update is that the EU will allow an extension until the end of June if Theresa May can get her deal backed in the next few days.

Last night the Prime Minister addressed the public and appeared to point the finger at MPs in order for them to allow things to progress.

However, as we have seen in recent weeks MPs are clearly not in favour of Theresa May’s previous attempts to get the deal through and I would be surprised to see this passed next week.  Therefore, this still leaves the UK with the risk of a ‘no deal’ Brexit and the clock is ticking.

Owing to the previous votes in the House of Commons when MPs voted to reject a ‘no deal’ Brexit it looks like the obvious choice will be to extend Article 50 but this has still yet to be granted and will need to agreed by all the 27 member states of the European Union.

The Swiss franc has started to strengthen against the pound and this will often happen when the political situation is uncertain and at the moment the short term, let alone the long term future is not clear.

Yesterday, Theresa May claimed that if Brexit is rejected for a third time then ‘this House will have to decide how to proceed.’

This suggests to me that if Theresa May is unable to get her deal through then I think her tenure will be limited as she has been adamant that Brexit means Brexit under her stewardship.

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Tom Holian
Tom Holian is Dealing Director at Foreign Currency Direct plc. and publishes FX comments on
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