The British currency has slipped to €1.1343 after rallying to €1.1363 at 8am, according to Bloomberg. This marks a massive fall from the heights of €1.1408 Pound Sterling hit on Wednesday. Pound Sterling suffered a similar slump against the US dollar, falling to $1.1790 having hit 1.2815 at 8am.
This also marked a huge fall from the highs of $1.2846 just 48 hours ago.
Traders are expecting the pound to remain volatile over the coming weeks as Brexit uncertainty continues.
The currency is set to finish the week 1.2 percent lower versus the US dollar, which would be its third consecutive week of losses.
On Thursday night, the Prime Minister’s Brexit plans suffered another humiliating defeat in the House of Commons.
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The latest defeat undermines the Prime Minister’s pledge to EU leaders to get her divorce deal approved if they grant her concessions.
Theresa May has promised that if parliament has not approved a deal by February 26, Mrs May will make a statement updating MPs on her progress on that day, who will have the opportunity to debate and vote on the way forward on February 27.
Britain is on course to leave the European Union on March 29 without a deal unless Mrs May can persuade Brussels to amend the divorce deal – primarily the Irish backstop – she agreed last year.
The pound begin to fall on Thursday before the crunch vote in the evening as several MPs stated their intention to vote against the motion.
Kristoffer Kjær Lomholt, a senior analyst at Danske Bank, told poundsterlinglive.com the pressure is rising on everyone involved.
He said: ”Right now it seems as though we have to get very close to the 29 March deadline (remember there is an EU summit on 21-22 March) or a small majority in the Commons will force May to ask for an extension of Article 50 by the end of this month. Pressure is rising on all.”
As the Brexit crisis deepens, two of the world’s biggest banks gave starkly different views on what the final outcome from negotiations might be.
Goldman Sachs sees a 50 percent probability of thePrime Minister getting a divorce deal ratified, adding MPs would ultimately block a no deal Brexit if it came to that.
The lender also sees the probability of a no deal Brexit at 15 percent and the probability of no Brexit at all at around 35 percent.
Goldman Sachs said in a note to clients on Friday: “There does exist a majority in the House of Commons willing to avoid a ‘no deal’ Brexit (if called upon to do so), but there does not yet exist a majority in the House of Commons willing to support a second referendum (at least at this stage).
“The prime minister will repeatedly try to defer the definitive parliamentary vote on her negotiated Brexit deal, and the intensification of tail risks will continue to play a role in incentivising the eventual ratification of that deal.”
JP Morgan said it thought Mrs May will now seek an extension to the March 29 deadline.