Following a series of setbacks as a result of unsuccessful discussions, the EU has now stated it’s now up to MPs to ensure that the relevant decisions are made in relation to Brexit.
After issuing reassurance in relation to the Irish backstop, EU officials stated that the Commons now have important decisions to make.
Labour and Tory MPs have also stated the Prime Minister should honour her commitment and allow her Brexit deal to be voted on.
Those worried that talks could be postponed to delayed need not worry, as No.10 has stated that its plan to go ahead with a meaningful motion still stands as of 11th March 2019.
It also stated that the focus of the Prime Minister was ensuring that MPs were working hard to bring this process of Brexit to an end.
Although there has been a lot of change in relation to the outline of Brexit, the injection of confidence could see GBP spike momentarily. However, the after-effects could be beneficial or detrimental.
British foreign minister Jeremy Hunt stated on 10th April, 2019 that Brexit may not go ahead should the Brexit deal be rejected by the EU.
There is also talk of the deal only going through if Theresa Ma hands in her resignation, allowing someone new to make decisions in relation to trade.
Former Disappointments Sees GBP/USD Trading at Three-Week Low
Although there is more positivity in relation to not a decision being made, this is only because of the forks in the road experienced in the past.
An early Asian session on 10th March 2019 showed the GBP/USD pairing near the 1.2970 figure.
Investors are likely to remain bearish until more data is released about Brexit and the discussion that will follow afterwards.
For example, should MPs support the proposed deal, then a permanent deal will be discussed. It is thought that things will remain the same until December 2020, on the assumption that Brexit goes ahead on 29 March.
Analysts speculate that despite the PM’s attempts to allow the EU to make concessions can mean the deal will be voted down due to only minor tweaks being made.
If the PM is only outvoted by a small majority, then the EU could allow a larger time frame to get its affairs.
Of course, speculation doesn’t really convert to a stable status in relation to forex, so investors will need to stay abreast of developments, which has been the case for several months.
