Sterling has moved even further away from the 21 month high that it hit last week. This comes as Brexit negotiations seem to have hit an impasse, with uncertainty as to whether anything will be resolved in talks with the European Union over the next day or so.
The latest proposals regarding the backstop, presented by Britain’s Attorney General Geoffrey Cox, had been rejected by EU Brexit negotiators on Tuesday. They subsequently told him to rework them and return with a revised plan by today. At the moment, it is not clear as to whether they are expected to accept new proposals.
Later today, May is expected to urge the EU to agree to these legally binding changes to the backstop, stating that their actions will have a huge influence on the outcome of the second ‘meaningful vote’, which should happen next week.
The vote will again ask MP’s to back Theresa May’s deal, which was strongly rejected in the first instance. The question remains as to whether she has done enough to change their minds. If they vote against her deal again, they will then get to choose whether to leave without a deal or extend Article 50.