For the third consecutive day, the GBP / USD pair retreats from the monthly highs noted last Friday.
Traders play the information that the United Kingdom will take part in the elections to the European Parliament, which will take place in two weeks. This was announced yesterday by the head of the secretariat of the British Cabinet of Ministers, David Lidington.
"As the government does not have time to achieve the passage through the parliament of a deal on the withdrawal of Great Britain from the EU before May 23, the country will be forced to take part in elections to the European parliament," the spokesman said.
Later this information was confirmed by the spokesman for Prime Minister Theresa May.
He said that the head of government deeply regrets that Foggy Albion will have to take part in European elections. At the same time, T. May hopes that the ratification of the "divorce" agreement will take place until the deputies take up their duties in the European Parliament.
Apparently, the latest comments of the British Cabinet mean that the government and the opposition have not yet been able to reach a compromise solution under the terms of Brexit.
According to MUFG experts, the likelihood that negotiations between the ruling conservative party and the Labor Party will succeed is only one chance out of three, but if a positive result is achieved, the pound sterling will receive an impetus for growth.
"The pound can strengthen by 2-4%, if a compromise deal is reached, which then goes to the parliament for a vote," the experts said.
The material has been provided by InstaForex Company - www.instaforex.com