The Great British pound came under renewed pressure at the end of last month, starting out April on the back foot following PM May’s withdrawal agreement being voted against again and as markets struggle to project a way forward for Brexit at this juncture as the UK heads towards a disorderly Brexit on 12th April.
The EU had agreed that if the deal had of passed by midnight on Friday then an extension of Brexit until 22 May would have taken place to allow the UK to sort out the paperwork. Instead, the week ahead for Brexit starts on Monday where British lawmakers will now vote on proposals to try to find a way forward and the prospects of a second referendum or a softer Brexit that will include a customs union are going to be the main drivers for sterling, while, in the background, May will be under pressure to quit while Labour will be gunning for a general election. However, a majority of MPs supporting a customs union Brexit will make it tough for Brexiteers trying to keep control as they look to run down the clock down to a no deal Brexit.
"European Council President Donald Tusk called an emergency EU summit to be held on 10 April following the defeated vote, but all eyes will be on May as UK looks for a way forward,"
analysts at ANZ Bank noted.
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