Before making some gains this morning, the pound broke its three day rising streak yesterday afternoon as concerns of a long extension to Brexit increased. Prime Minister Theresa May has said a further postponement to the Brexit date is needed if the UK is to avoid leaving the EU without a deal, and it is understood that she has written to Donald Tusk this morning to request an extension until the 30th of June.
A withdrawal deal still hasn’t been approved by MPs, and cross-party talks continue today in the hope of breaking the Brexit deadlock.
On Wednesday, a bill to force Theresa May to ask the EU for an extension was passed by one vote. If passed by the House of Lords also, the bill will allow MPs to decide on the length of a Brexit extension. The House of Lords will consider the draft legislation on Monday.
Today, President of the EU Parliament, Donald Tusk, has suggested that a ’12 month flexible delay’ may be the answer, although this will have to be approved by EU leaders in their summit next week.
