The UK is in an interesting transitioning period trying to enforce Brexit and leave the EU on the 31st of October.
Last week was one of actual motions towards getting this done, Boris Johnson's Brexit deal was unanimously approved by the EU
and other at the summit in brussels on Thursday however not without rightful scrutiny shortly after as the deal leaves Northern
Ireland still in the EU and would hold many issues with boarders.
In short these issues left parliament to take a vote if this deal is good enough and wither a no deal or amendments should be made
with extension to the 31st of October deadline. The vote was Saturday and the government lost 322 to 306. Just 16 votes between them
which no doubt came down to the DUB and Labour rightly having concerns over the logic of rushing a bad deal.
This now leaves the UK having to amend and extend Brexit further because of Sir Oliver Letwin's tabled motions.
Why the pound should weaken
- The obvious nature of uncertainty
- the pound was falsely built up this week only to turn out with a negative outcome
- this extension and amendments shows weakness within the UK's alliances
- people will anticipate a drop and add to it
- this will cost the UK more money
- Right now there isn't any definitive answers to important questions
Although the approved deal made by Johnson at the Brussels summit isn't dead it now leaves virtually no hope for a 31st October
positive leave/deal for the UK without significant compromise or conflict within itself.
Monday will see Boris try to convince MP's to vote potentially on Tuesday and even then amendments will still need to be in place.
The motions overall are positive towards trying to get this done, however the manner this has happened and changes not making
any effect untill Tuesday should see the GBP fall across the forex market on Monday.