In today’s Sterling Euro forecast, we’ll look at how, despite ongoing talks, the DUP has confirmed that it is still unable to support the Prime Minister’s Brexit deal. This forces Theresa May to postpone a third vote, which she was hoping to hold this Tuesday.
Emergency talks were held this morning, but Mrs May was unable make a breakthrough with the DUP’s Arlene Foster. Prime Minister May has told the House of Commons that there is “still not sufficient support” to bring her agreement back to the House for a 3rd meaningful vote.
Later this week, MPs will vote on a series of bills that could cause further set-backs to the Prime Minister’s plans, causing further embarrassment and heaping greater pressure on the PM.
Namely, a vote on leaving the EU without a deal, having a second referendum, remaining in the customs union, remaining in the customs union and single market, or revoking Article 50. Whilst these motions are not binding, it is hoped there will be a parliamentary consensus.
Either way, the two key dates remain the same. If MPs agree to the deal before Friday, then the EU will allow the UK to exit the EU on the 22 May. Otherwise, the UK will exit the EU on 12 April with no deal in place.
Is the Euro going to go down?
Sterling started the day on the back foot and has struggled to recover, currently trading -0.3% down against the Euro on the day. However, any parliamentary consensus towards a customs union and/or single market access may provide some support for the Pound.
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