Theresa May has suffered another embarrassing defeat as her withdrawal agreement was voted down in Parliament yesterday evening for a second time.
The under pressure Prime Minister managed to gain a few additional votes in her favour but the deficit of 149 was a clear message that the EU’s most recent concessions were simply not enough. The pound gyrated while the day’s debating took place. The legal advice from Attorney General, Geoffrey Cox, could well have placed a nail in the coffin for May’s deal. His opinion, that the risks to the UK from the Irish backstop remained unchanged despite legal assurances from Brussels, ensured many Conservatives as well as the DUP voted the deal down.
We’ll now see a vote in Parliament today to take a ‘no deal’ off the table which will likely be passed. From this juncture, it just remains for MPs to vote for an extension to Article 50 (3 months expected). One has to wonder what the Leave-supporting MPs have up their sleeves. After all, a delay will increase the chances of a general election, 2nd referendum, a softer-styled Brexit or no Brexit at all.
Today’s trading session will also see the UK Spring Statement as well as some key US economic reports. The pound will be under the spotlight once again as it treads water in the $1.31s and €1.16s.
Written by Viv Savani. 11:14am, March 13th 2019
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8:31am, January 7th 2019
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