The pound strengthened against the euro this morning as three ministers threatened to resign if the Prime Minister doesn’t delay Brexit, and Labour said it’d throw its weight behind a second referendum if Corbyn’s proposal fails.
As for the PM, Theresa May has denied talk of a Brexit delay herself, saying she is ‘focused’ on leaving on the set date of 29 March. With the meaningful vote pushed back two weeks, it’s been looking very much like running the clock down to a choice between the withdrawal agreement with minor changes or assurances, or a no deal, with May insisting she had felt a ‘real determination’ from EU leaders in recent days to find a ‘smooth and orderly way [to leave] with a deal’. Nonetheless, with developments yesterday evening, businesses seem a little more confident that no deal could be off the table.
The pound is still trading at the top of an 18-month range and a good 2 cents above the 100-day average rate. Nonetheless, there is a definite feeling of the calm before the storm – so don’t leave your money to chance.
The PM will make a statement to Parliament today on her progress, which will be debated in the House of Commons on the Wednesday. In the meantime, the Bank of England’s Financial Policy Committee is meeting today, with a statement expected on 5 March.
