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Jane Foley, senior FX strategist at Rabobank, explains that the GBP has lost ground over the past few sessions, even though it may be holding on to its position as best performing G10 currency in the year to date.

Key Quotes

“GBP continues to behave as a gauge of investors’ expectations regarding Brexit, the recent losses in the value of the pound appear to be a reflection of nervousness ahead of next week’s key parliamentary votes.”

“Specifically, there are currently strong doubts as to whether PM May will be able to garner sufficient votes to pass her amended Withdrawal Agreement through the Commons.”

“Additionally, investors may be taking on board the risk that a delay to the Brexit start date does not necessarily mean that a ‘no deal’ outcome will necessarily be avoided, unless MPs explicitly take this risk off the table.”