Brexit, Brexit and Brexit.

Market Analysis /
12 Mar 2019

After lasts nights last minute talks the Prime Minister was said to have finally got unilateral changes to the Irish backstop, that could push MP’s to finally vote through the deal that has been almost three years in the making.

After the comments from the Prime Minister’s office overnight we saw Sterling drive forward, with Cable hitting highs of 1.3290, and EURGBP lows of 0.8475. However today has seen a rollercoaster ride for markets after the Attorney General gave his legal opinion on the changes and ruled that the changes in the new agreement only REDUCE the risk of being stuck in the backstop and do not legally remove the risk.

The final paragraph of the attorney generals letter to the government is as follows:

“However, the legal risk remains unchanged that if through no such demonstrable failure of either party, but simply because of intractable differences, that situation does arise, the United Kingdom would have, at least while the fundamental circumstances remained the same, no internationally lawful means of exiting the Protocol’s arrangements, save by agreement.”

This basically says that nothing legally has changed.

As the afternoon has moved forward there have been yet more bombshells as it is suggested that both the DUP and many other MP’s will still not vote for the deal. However with a sore throat, and feeling unwell the Prime Minister battled on through her grilling in the house of commons as she warned that a vote to reject the deal tonight could well mean an end to the hopes of Brexit. She made herself clear, reject the deal tonight and Brexit may no happen.

A day of huge volatility, and it's not over yet.
A day of huge volatility, and it's not over yet.

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