GBP/NZD has slightly declined on Tuesday. The pair is moving within a horizontal channel that started to form last Thursday. Currently, GBP/NZD is fluctuating closer to the support line of the channel, waiting for new hints from the UK parliament regarding Brexit.
One British pound now buys 2.0191 New Zealand dollars, which is 0.10% less than yesterday.
The pair is now sensitive to any news coming from the UK, where the parliament is debating a Brexit bill this week.
House of Commons Speaker Rules Out Brexit Vote
On Monday, John Bercow, Speaker of the UK parliament’s House of Commons, refused another “yes or no” vote on Brexit to be held this week. He argued that the proposal is quite the same as that of Saturday, and it didn’t make any sense to repeat it.
“Today’s motion is in substance the same as Saturday’s motion, and the house has decided the matter. Today’s circumstances are in substance the same as Saturday’s circumstances.”
On Saturday, UK Prime Minister Boris Johnson failed to obtain the parliament’s approval for his latest Brexit deal that had been agreed earlier last week with European leaders.
Now that the so-called meaningful vote was ruled out, MPs have to pass the Withdrawal Agreement Bill (WAB), which has to be thoroughly scrutinized by both the House of Commons and the House of Lords, which might require several weeks instead of days.
The refusal of another yes or no vote put additional pressure on GBP/NZD, but the pair has enough support given that the risk of a no-deal Brexit is reduced.