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GBP falls close to 1.24 as May defers Brexit vote

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Investors have not enjoyed listening to the confirmation from UK Prime Minister Theresa May that Tuesday’s key Brexit vote has been postponed, and this news has resulted in the British Pound falling to its lowest level against the US Dollar since April 2017.

Traders have unexpectedly found the needed encouragement today to price in a host of different scenarios over what could happen regarding Brexit and with none of them making for a pleasant scenario, this has inevitably meant that the Pound has suffered as a result of the prolonged confusion.

It is not just the likelihood of a no-deal Brexit that investors are preparing into their valuations of the British Pound.

Investors are also re-pricing into the market the increased likelihood that Theresa May will once again be at threat to expectations of a leadership challenge. Another emerging threat is that the decision taken today raises the threat level that the UK is falling into a disorderly Brexit trap.

Disclaimer: The content in this article comprises personal opinions and should not be construed as containing personal and/or other investment advice and/or an offer of and/or solicitation for any transactions in financial instruments and/or a guarantee and/or prediction of future performance. ForexTime (FXTM), its affiliates, agents, directors, officers or employees do not guarantee the accuracy, validity, timeliness or completeness, of any information or data made available and assume no liability as to any loss arising from any investment based on the same.


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