UK government spokesman confirms
- Cabinet earlier discussed new deal that is to be presented in parliament
- Says Cabinet meeting was characterised by shared determination to pass the deal
- New deal includes alternative arrangements, assurances on UK integrity in the event that the backstop is triggered
The pound has pared some of its earlier losses as cable rises from 1.2690 to around 1.2720 currently as more headlines pour in over May’s statement in parliament later. The price action suggests some short covering ahead of the event in case that May’s offer is compelling enough to convince UK lawmakers to switch sides and vote for her.
However, I reckon after the details have been revealed, there isn’t going to be much of a significant change. Despite this being her last action as prime minister, it’s just not going to be enough to get a Brexit deal through; not when Labour is continuing to reaffirm that they will vote against her when the time comes.
The pound may see more bids in the coming session as May’s details may give her some hope but when reality sets in, expect it all to crumble into a big messy pile again. I’m still inclined to sell the rallies unless her deal manages to swing the odds in her favour – but that is very, very, very unlikely to happen as of now.