No easy way out for Theresa May

Brexit Vote or No Vote

Posted Monday, December 10, 2018 by
Skerdian Meta • 2 min read

The British Prime Minister Theresa May is/was expected to present her Brexit agreement with the EU to the UK Parliament tomorrow. But, from what we have heard so far, it doesn’t seem likely that her deal will take all the votes needed to pass as a bill.

The European Court of Justice ruled out this morning that the UK can unilaterally revoke Article 50 and turn back to the EU without consent from other member countries if they decide to do so. But, Theresa May’s spokesperson just said a while ago that she will go ahead with the vote and the ECJ ruling doesn’t change the government’s policy on Brexit. He added that May is confident that she will take all the votes that are needed to pass the Brexit deal.

But now, we hear that May might pull the plug on the Parliament vote tomorrow. Bloomberg cited “someone familiar with the matter” saying that May might no go ahead with the vote. A few minutes later, the head of politics at City AM confirmed that the vote is off tomorrow.

So, is it on or is it off? The GBP has just lost around 60 pips now and GBP/USD continues to slide lower. It was pretty evident that Theresa May wasn’t going to get all the numbers required to pass her Brexit deal tomorrow, so she requires some more time.

She might try to convince more MPs to vote the deal which seems unlikely or to ask the EU for some changes to the deal to satisfy British MPs. But the EU has just repeated that this is the only deal available, so even if she gets to make some changes, they will only be cosmetic. It’s all a big mess for the UK right now, so be careful when trading GBP during this time guys.

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