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GBP/USD: UK Pound down for a third week

By Jeff Davies

The British pound recorded a third consecutive week of losses on Friday as jitters grew among investors about the British parliament’s vote on Brexit next month.

Theresa May said on Thursday her focus is on convincing lawmakers to back her Brexit plan in parliament and not on making preparations for any plan B.

“We expect the deal to be rejected by parliament although we give the highest probability by far to the UK ending up with some form of the May deal and/or the Norway Plus option,” MUFG analysts wrote in a note.

Those concerns were reflected in the currency markets, with the British currency down nearly 3% Euro, it was also down 0.3% at 88.24 pence.

If a “No” from parliament on Dec. 11 is interpreted as a slide towards a no-deal, the pound may sink to new lows. But if a second referendum — and a Remain outcome — becomes a possibility, the opposite is likely.

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