The problematic withdrawal from the European Union, disagreements in the government and a slowdown in the global econom weigh heavily on the pound. The currency plunged to a fresh 18-month low against the US dollar after the House of Commons voted by a majority to investigate the issue of disrespect of the Cabinet of Ministers to the legislature.
Internal disputes between the parliament and the government are not the best support for any currency. The results of this vote are an important political indicator, and it signals a danger. On the eve of the most important discussion in the Parliament about the Brexit deal between London and Brussels, Theresa May’s government does not have the necessary majority in the House of Commons. Thus, the voting results are unpredictable. If lawmakers do not ratify the deal, the pound will fall again. Opening the debate before the vote, Theresa May said that Brexit should not split the country into two camps.
The British Prime Minister said that they will be able to take advantage of this moment [withdrawal from the EU] only if they are able to implement such a Brexit that will unite the country.
This means that the protection of simplified trade relations, timely support of the supply chains and jobs that depend on them, security cooperation, the progress the country has achieved with regard to Northern Ireland, and the rights of citizens in the UK and throughout the European Union will be provided.
