Where to Now for May After Brexit Failure?
Rowan Crosby • 1 min read
The GBP/USD is still in a state of uncertainty after PM May’s second Brexit deal was once again shot down in flames.
The second vote on a deal on how the UK would exit the Eurozone didn’t fail as badly as the first vote in January. But nevertheless, there now appears no way forward for the UK and May.
PM may is now stuck between a rock and a hard place. The European Union won’t agree to the changes that would get it past her own party. Her own party won’t agree to it unless the EU gives a little. So for now we are stuck with no end in sight.
As the March 29 deadline creeps ever so closer, there is little to no chance that a new deal will be struck in time.
MPs will now vote on whether to exit the EU without a deal entirely, a move that will certainly hurt the UK’s fortunes and likely weigh on the GBP/USD even further. The vote will happen tomorrow.
The Pound has actually rallied significantly, from earlier in the year when it appeared there was little hope of an outcome. Now as the deadline looms, there is more uncertainty than ever.
There is a chance of yet another deadline pushback, but the EU is less keen on this so it might not be a likely possibility.
While this result is not a shock, it does feel like the whole Brexit situation is now in a state of disarray. If it wasn’t already.