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Sterling wasn’t able to break its streak of losing weeks as the U.K. government and lawmakers fail to pass a Brexit deal once again.

Overlay of GBP Pairs: 1-Hour Forex Chart
Overlay of GBP Pairs: 1-Hour Forex Chart

United Kingdom Headlines and Economic data

Major Market Drivers for the British Pound

Sterling pairs saw initial weakness on Monday as Brexit uncertainty and British PM Theresa May’s position was called into question, but signs of life for the bulls arose on rumors of the ERG (pro-Brexit group of Tory MPs) may switch sides to support May’s Brexit deal on Tuesday. And on Wednesday, Sterling bulls got another shot in the arm after Theresa May said, “I am prepared to leave this job earlier than I intended in order to secure a smooth and orderly Brexit,” igniting one another push higher among British pound pairs into the afternoon U.S trading session. The offer to resign was put out in hopes that Theresa May’s opponents would shift to support her deal.

Unfortunately for the bulls, it didn’t take too long for the DUP and ERG to announce that they still would not back her Brexit deal after her resignation offer, which prompted traders to sell the British pound on Thursday and into Friday ahead of the third meaningful vote on the Brexit deal.

On Friday, there was one last bounce in the pound during the morning London session, which turned out to be one last opportunity to short ahead of the Brexit deal, which was rejected once again by U.K. lawmakers as expected. Sterling pairs fell on the event as the uncertainty on the future of Brexit remains high, and firmly put Sterling as the biggest loser against the major currencies this week.