[vc_row][vc_column][vc_column_text]Brexit uncertainty saw the pound struggle last week as markets braced for the possibility of the UK leaving the EU without a deal, although GBP did later recoup some of its losses on signs of progress.

The mood towards the euro soured significantly, meanwhile, as the German manufacturing sector saw its worst monthly performance in more than six and a half years.

Additionally, as the Federal Reserve all but ruled out the prospect of interest rates rising again in 2019 this drove the US dollar lower across the board.

However, the risk-sensitive Australian and New Zealand dollars remained under pressure thanks to increasing market anxiety over global growth prospects.[/vc_column_text][/vc_column][/vc_row][vc_row][vc_column][vc_column_text]Pound support limited as Brexit deal hangs in the balance

Events surrounding Brexit continued to dominate sentiment towards the pound last week, with the latest Bank of England (BoE) policy meeting offering markets no surprises.

As policymakers voted unanimously to leave interest rates on hold the mood towards the pound remained muted, even as the BoE expressed confidence in businesses’ ability to withstand potential Brexit disruption.

However, GBP exchange rates came under significant pressure as EU leaders looked set to reject Theresa May’s proposed three-month delay to the Brexit deadline.

Rising odds of a no-deal Brexit weighed heavily on the pound, overshadowing a better-than-expected uptick in February’s UK retail sales data.

The pound recovered some of its lost ground on Friday, though, after the EU agreed to extend the exit deadline until at least 12th April.

If Theresa May is unable to secure parliamentary backing for her proposed Brexit deal in a third ‘meaningful’ vote, however, GBP exchange rates could swiftly return to the back foot.[/vc_column_text][/vc_column][/vc_row]