Today should see Theresa May’s withdrawal agreement deal finally put to the test. As mentioned yesterday, it’s highly likely she’s defeated. The beleaguered Prime Minister put forward a last-ditch attempt to sell her deal in Parliament yesterday. May claimed that failing to deliver Brexit would be a “subversion of our democracy.” She also added that “Whatever you may have previously concluded, over these next 24 hours, give this deal a second look.” It seemed as though the PM’s words fell on deaf ears as most MP’s appear to have made their mind up. Theresa May additionally explained to Parliament how she had obtained a 3 page letter from Jean Claude Junker and Donald Tusk, offering further assurances but which falls short of the UK’s request to insert a target date for both sides to ensure the backstop would only be used for a year, if at all.”
Yesterday saw some fun and games for sterling. The currency moved higher after claims from ITV’s Peston that the ERG (European Research Group – comprising of Conservative MPs: generally pro-Brexit/anti-May’s deal) would vote with May unless Labour MP Hilary Benn removed his amendment for no-deal not to be possible. This news pushed GBP higher by around 0.5%. Tonight’s vote will likely take place between 7pm and 9pm. Please be aware we could see serious levels of volatility across pound pairs depending on the vote outcome and any of the subsequent consequences which could rumble on late into the evening.
Written by Viv Savani. 8:47am, January 15th 2019
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