Pound’s black week

Monday's worst currency was the British pound, which plummeted against all major currencies. The current week is very important for sterling, as Prime Minister Theresa May originally planned to vote on Brexit on Tuesday. However, the pound fell after the vote was blocked by Parliament.
Since the UK plans to leave the European Union on March 29, time is running out and May should formally request the EU to extend Article 50. Since this would require the approval of all 27 countries of the bloc, the request can be approved at the EU Council meeting on Thursday.
If May does not require an extension until Thursday, the pound will have serious problems, because it will mean that the EU should hold an emergency summit on March 28.
The Bank of England, which will hold its regular meeting on Thursday, will be unhappy with this development, and therefore the GBP/USD pair may fall to 1.30 if May doesn’t make enough changes or magically gain enough support to hold the third vote by Thursday.
But we can see an even greater decline in the GBP even before the meeting if the report on the labour market on Tuesday turns out to be worse than expected. According to the components of business activity, the service sector experienced the largest decline in employment since 2011, and the manufacturing sector recorded the highest rate of job loss in 6 years.
The information above cannot be considered as an investment advice and past results do not indicate future performance.

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