It’s crunch time for Prime Minister May once again as she heads back to Parliament to face a couple of amendments which could materially alter the direction of Brexit.
Yvette Cooper’s amendment would ultimately take a no-deal Brexit off the cards as it would seek to extend Article 50 to the end of the year, allowing more time for May to negotiate an enhanced withdrawal agreement. The other amendment which has got too much attention comes from Tory MPs Murrison and Brady which, if passed, would see May sent back to Brussels to renegotiate the Irish backstop. There’s rumour this amendment could even have the backing of May which would surely help garner further support across the benches.
The votes are expected to take place this evening with both outcomes having potential to impact sterling’s progress. However, the potential impact on GBP is unsure following its substantial rally these last few days. The pound has increased its value by nearly 4% against both the buck and the shared currency in just over 2 weeks. Some believe this is too far too quickly and that gravity may begin to kick in should further uncertainty be cast over the currency. We’ll find out this evening whether we may encounter a classic ‘buy the rumour, sell the fact’ event. Good luck, Mrs May!
Written by Viv Savani. 9:14am, January 29th 2019
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