Pound Strong then Weak On Brexit Chaos

Published / Last Updated on 12/03/2019

Strong PoundThe pounds rose early today as Theresa May arrived back from Strasbourg last night looking to secure Brexit assurances from European Union.

The pound rose to $1.3290 as Theresa May makes a last attempt before the vote later to move MPs to not vote against her divorce deal before the planned depart from the EU on 29th March.

The pound was 0.6% higher than yesterday at $1.2945.

The euro dropped from 85.15 to 84.71 against the £.  Most of other currencies stayed within their usual trading range.

Theresa May met with Jean-Claude Juncker Head of the European Commissions last night agreeing three points to assurances and legally binding statements in respect of the Irish backstop (the 'insurance' net to prevent controls between the British border of Northern Ireland and EU member Ireland).

If Theresa loses Tuesday’s vote, MPs will then vote on Wednesday on whether to leave without a deal and then a further vote for a possible delay to Brexit i.e. asking the EU if the UK can postpone Brexit.

Comment

We expect the vote to be defeated, the pound to weaken tomorrow and FTSE 100 to rise.  More votes tomorrow then.  We suspect MPs will then vote for a deal only Brexit i.e. No Deal Brexit will be 'written off'.


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