London, United Kingdom (AFP) —The British pound see-sawed Monday as traders jockeyed for position on the eve of another critical parliamentary vote for Prime Minister Theresa May.
The UK currency kicked off the trading cycle in Asia by tanking to its lowest level since February 19 at $1.2949, but then bounced back in the European day — with analysts trying to guess where it may head next.
“The foreign exchange market thinks tomorrow’s (Brexit) meaningful vote is a big deal, and expects volatility sooner rather than later,” said Chris Turner, global head of strategy at ING.
As British MPs prepare to vote again on the divorce deal on Tuesday, the prime minister appears to have little to show for her recent efforts, prompting warnings of another humiliating defeat.
“We are 24 hours away from May’s supposed ‘meaningful’ Brexit vote, and the rumour is that (she) could lose this vote by a wider margin than the last one,” said Oanda analyst Dean Popplewell. “As expected, sterling remains volatile.”
May was, however, expected on Monday to travel to Strasbourg in a last bid to win a breakthrough deal.
“Though the prime me last-minute changes with the EU, she is neither making progress in Brussels nor at home,” said City Index analyst Fiona Cincotta.