There has been little to report today in major currency markets, with most trading in narrow ranges versus the Dollar. Sterling continues to be pushed and pulled by the Brexit blackhole and the modest uptick in GBP/USD above 1.32 has been attributed to reports that parliamentary support for Prime Minister May’s draft Brexit deal may have inched higher in the past 24 hours.
The reality is that it is still very unclear whether parliament will be allowed to vote (for a third time) on Theresa May’s deal, let alone how the 634 members of parliament will vote. In any case, parliament will tomorrow hold a series of indicative (i.e. non-legally binding) votes on a number of alternative plans to the government’s Brexit deal. The idea is to see whether there is majority support for an alternative plan B although, as always with Brexit, there is an extra layer of uncertainty as parliament has not yet confirmed what alternative plans it will vote on. These potentially include the government revoking Article 50, holding a second referendum, a
customs union deal, membership of the EEA, Theresa May’s Brexit deal and a no-deal Brexit.
