The EU has granted Prime Minister Theresa May an extension until the 22nd of May on the condition that her withdrawal deal is approved by the 12th of April. The pound started the day today in a stronger position due to the fact that we have slightly more clarity over Brexit.
This came after sterling dropped to a one week low against the dollar yesterday as EU leaders deliberated over whether to grant Prime Minister Theresa May a short extension to Article 50. Sterling particularly weakened in the afternoon, when the President of the European Parliament suggested that Brexit should only be delayed until the 18th of April.
Less than a week before the withdrawal date, momentum is building for all scenarios, with businesses raising serious concerns over a no-deal, the Prime Minister gunning for her deal to be passed and Leader of the Opposition, Jeremy Corbyn, travelling to Brussels yesterday to seek an alternative arrangement. A petition calling for Article 50 to be revoked has also received over one million signatures.
Meanwhile, the Bank of England made the decision to leave interest rates on hold. Sterling held steady after this announcement, but soon dropped again. It’s no surprise that Brexit dominated talks at the monetary policy meeting, as the Bank of England warned that uncertainties could hurt both confidence and business investment.
