The pound looks stronger this morning after a poor performance last week, but could still show volatility ahead of European elections on Thursday. The outcome could have a strong effect on the pound, especially if the possibility of a no-deal Brexit starts to look increasingly likely.
Sterling is possibly up due to the Prime Minister’s claim that a ‘new and improved’ Brexit deal will be put to MP’s in early June. May said the deal will be a “bold offer”, however Labour leader Jeremy Corbyn has said that it was “very difficult” to see the bill making progress.
Sterling finished the week in a low position as Brexit talks between the Government and the Labour Party collapsed. After six weeks of negotiations, it has transpired that both sides have failed to reach a deal due to lack of a ‘common position’.
With the Prime Minister’s Brexit deal looking likely to fail in Parliament again and the increasing likelihood of her resignation, the fate of Brexit is looking more uncertain than ever.
