British pound pulls back from highs as investors await next Brexit vote
The pound fell Thursday, a day after the U.K. currency surged on a vote by the country’s parliament to rule out a no-deal exit from the European Union. The pound GBPUSD last traded at $1.3253, a 0.6% drop on the day, after hitting $1.3339 late Wednesday, its highest level since June 13, according to Tullet Prebon data.
That rise marked the largest one-day move since April 18, 2017, according to Dow Jones Market Data. Wednesday’s vote will likely eliminate the likelihood of a no-deal Brexit, which has widely been considered the worst-case for the U.K. economy.
On Thursday, lawmakers are expected to vote in favor of a proposal that would delay the U.K.’s exit beyond the current March 29 deadline. But U.K. lawmakers will need the EU’s other 27 governments to unanimously approve an extension.
On the heels of Wednesday’s vote, Prime Minister Theresa May is expected to bring back her twice-rejected deal, possibly as soon as next week, for another vote.