UK Parliament to hold another Brexit vote Friday

Summary:

• Pound continues to drift lower
• UK MPs to vote again on Brexit tomorrow
• Vote not "meaningful" as WA and PD separated

It’s not been a good 24 hours for the pound really with the currency experiencing pretty much one-way trade lower ever since the DUP announced yesterday evening that they would not support Theresa May’s deal. Parliament will vote once more on Brexit tomorrow but it is not believed to be another so-called “meaningful” vote on PM May’s deal - but either way, unless the DUP are on board the chances of it passing still remain slim to none.

MPs will be asked to vote on the withdrawal agreement but not the “political declaration” which may be seen as a legal success should it get the required support but would leave opposition MPs and the public at large feeling that the government has pulled a fast one. The government is seemingly splitting the withdrawal agreement (WA) from the political declaration (PD) for 2 main reasons - firstly to get around speaker Bercow's criteria for a substantial change to May’s deal needed to bring it back to the house and secondly as it is not as definitive it could receive more support from MPs who have so far opposed May's deal.

GBPUSD has dropped over 200 pips since the DUP announced they would not be supporting the Government's deal last night and the currency is now heading back towards the lower reaches of the 1.2960-1.3380 range that has contained price in recent weeks. Source: xStation