Pound was at a one-week high today after Brexit Secretary Stephen Barclay clarified that the UK remained committed to leaving on 29 March. The pound was trading at $1.2720 against the dollar.
Parliament is preparing for a debate on Theresa May’s Brexit withdrawal agreement next Tuesday. May must win the vote or risk seeing Britain’s exit from the European Union descend into chaos.
Barclay’s remarks came the day after Digital Minister Margot James suggesting Article 50 might have to be extended in order to stop a no-deal Brexit if May’s deal is rejected by Parliament.
The Telegraph newspaper, citing unidentified sources, also reported that British and European officials were discussing the possibility of extending the formal exit process from the European Union amid fears a Brexit deal will not be approved by March 29.
“GBP/USD can bounce fiercely if only there’s some good news,” said Kit Juckes, currencies strategist at Societe Generale, adding: “Under these circumstances it is clearly impossible to make reliable GBP forecasts. Anything from an endlessly drawn-out Brexit to an amicable agreement or a hard Brexit, everything remains within the realms of possibility, so that the outlook for sterling also ranges from a recovery rally to currency crisis.”