The Brexit is putting pressure on the Pound again. Overview for 14.03.2017

The GBP/USD pair is trading to the downside on Tuesday afternoon being influenced by new possible complications of the United Kingdom’s exiting the EU.

On Tuesday, the British Pound is falling against the USD. The current quote for the instrument is 1.2135.

The Pound is neutral until the Brexit “ghost” appears – probably, this is the only negative driver for the British currency.  Yesterday, the British Parliament passed the bill, which allows the government to use Article 50 of the Treaty of Lisbon. It means that the May’s starting to realize the plan. If there are no more legislative obstacles for the Brexit, the country will start the procedure.

Apart from approving the use of the Article 50, the Parliament removed all restrictions to the Prime Minister’s right to make decisions. It means that May still has authority in the United Kingdom, although a lot of people doubted that.

From now on, the Cabinet of Ministers aren’t limited in their actions relating to the Brexit. So, market players are actively discussing a possibility of United Kingdom’s making the first step to exit the European Union even until the end of March.

In fact, this is the way it should have been. Earlier, all plans relating to the Brexit were pointing at March 2017. At the moment, it’s the middle of the month, and far-sighted British are pretty sure to have prepared the list of the documents necessary to start the procedure.

This is a strong factor to put pressure on the Pound and it may last for quite a long time.

RoboForex Analytical Department