Sterling is steadily in range for now awaiting more clarify regarding the path forward for Brexit. UK Prime Minister Theresa May’s Brexit deal was voted down again in the Commons overnight, despite the last minute concessions from EU. MPs voted 391-242 to reject the deal, an insufficient improvement from January’s 432-202 votes. Now, a vote on no-deal Brexit will be carried out at 1900GMT on Wednesday. If no-deal is voted down, there will be another vote on Thursday for seeking Article 50 extension.
May warned after the defeat. “Let me be clear. Voting against leaving without a deal and for an extension does not solve the problems we face.” And, with the government at impasse, she asked “Does it wish to revoke Article 50 (announcing intention to leave the EU)? Does it want to hold a second referendum? Or does it want to leave with a deal, but not this deal?”
EU President Donald Tusk’s spokesman said the EU has done “all that is possible to reach an agreement” and the solution “can only be found in London.” The results now increases the risk for UK to crash out the EU without a deal. And he emphasized that there needs to be a “credible justification for a possible extension and its duration.”
Reactions in Sterling is rather mild. The development was not unexpected except that May and Juncker provided some false hope that lifted the Pound briefly.
