PM May Blocked From New Votes On Brexit deal, Pound Value Falls

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Today, the UK pound was sliding yet again as the traders reacted to news that Theresa May, the Prime Minister of the United Kingdom, was being restricted from putting forward her Brexit deal for another parliamentary vote that was supposedly scheduled this week.

John Bercow, the speaker of the Parliament, made the announcement earlier this afternoon. He said that the “government cannot legitimately … resubmit to the House [of Commons] the same proposition or substantially the same proposition as that of last week.”

He said, however, that another vote could go ahead if the Brexit deal of PM May was changed significantly.

The Brexit deal of PM May with the European Union was rejected by the parliament of the United Kingdom twice — once in January and once last week. Instead of accepting her deal, British members of parliament (MPs) are now hoping to get an extension to the Brexit deadline that is set on the 29th of March.

Today, the UK pound dropped by as much as 0.8 percent against the US dollar to trade just below $1.32, however, it was able to recover some lost ground. Sterling slid by as much as 0.9 percent against the euro, with losses accelerating after the announcement of Bercow in parliament.

The chief market analyst at Markets.com, Neil Wilson, stated: “This is a big blow for the government as it effectively closes off another vote this week unless May can pull a rabbit out of the hat.”

He added: “However, it is worth noting that the government has already rowed back expectations for a third vote, with government ministers saying over the last day or so that they would only bring a vote if they thought they would win it.”

UK MPs overwhelmingly voted against the deal during the two previous votes. There was also little hope that a third vote would be able to seal the deal. The deal of PM May was defeated by 230 votes last January and then by 149 votes on the 12th of March.

Earlier, PM May had warned lawmakers that unless they approved her Brexit deal, the exit of the United Kingdom from the European Union could face a long delay. Many Brexiteers are concerned that this could mean that Britain may never leave the bloc.