Second Major Defeat For The Government, Market Volatility To Stay?
Last night saw a second defeat for the government on the current proposed withdrawal agreement. The markets moved dramatically hitting highs of 1.176 in the morning when Prime Minister May appeared to have secured legally binding terms over the backstop concerning the border for Northern Ireland. Her victory quickly turned to ashes as the Attorney General pointed out that it really wasn’t the change that had been promised.
The Euro slid back to 1.154 and settled on this before the vote. This led to many currency retailers updating there rates mid-way through the day, an unusual event in itself.
Owing to this result MPs will be voting later on today whether or not the UK will attempt to leave the European Union without a deal on the 29th March.
If MPs vote against a no deal later today then another vote will be taking place tomorrow on delaying Brexit.
It is looking increasingly likely that MP’s will vote not to leave without a deal and will force the government to extend the deadline (with the EU’s agreement, by no means guaranteed). Therefore it is becoming increasingly possible the UK will not be leaving the EU on the 29th of March.
The idea of a no deal Brexit is not popular either in the House of Commons or the EU so the likelihood is for an extension and even Attorney General Geoffrey Cox has said that a Brexit delay is now ‘inevitable.’
All in all continued market volatility is likely as the uncertainty of the Brexit situation hangs heavy.
For great rates in these turbulent times stay tuned to our website and we will aim to continue to keep you posted along the way as the situation evolves.
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