The pound jumped higher yesterday afternoon/evening following two notable developments on the Brexit front.
Firstly, under pressure from many of his own party following last week’s resignation of 7 Labour MPs, Jeremy Corbyn has backed a 2nd referendum. However, the terms of him backing a second vote are unclear. It’s likely the pressured Labour leader would ultimately desire a deal with the European Union which kept the UK in the customs union. No doubt more detail will follow but this piece of news was worth a 0.35% pump on the GBPUSD rate.
Secondly, just as many UK participants were getting ready for bed, it was released across various newspapers that Theresa May would consider delaying Brexit if she cannot strike a deal with the EU before the 29th March. This story is developing fast and was worth a 40pip spike in the cable rate. It’s expected that PM May, another leader under severe pressure from the Remainers within her party, is pursuing this measure to avoid another embarrassing defeat. It’s rumoured she will meet with her cabinet this morning to discuss potential options before addressing Parliament later today. Stay tuned…
Written by Viv Savani. 8:27am, February 26th 2019
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