The House of Commons voted against PM May’s Brexit deal 432 to 232, the worst defeat in almost over a century. The British pound spiked to the session lows at 1.2668 before rebounding towards 1.2800. Immediately after the defeat, Jeremy Corbyn, the leader of the opposition Labour party signaled he would now table a motion of no confidence in the government on Wednesday.
The scenarios and expectations on how Brexit will play out are still plentiful. 73 days are left until March 29th and tomorrow we will find out if PM May will survive yet again. We still could eventually see PM May deliver a Brexit deal if she survives the no confidence vote and is able to get EU concessions, something that they reiterated today they were not willing to do. The risks for a second Brexit referendum or a general election have also gone up. The pound is well off the lows as expectations are now lower for both a no-deal Brexit or seeing PM May’s Brexit deal pushed through. Their is no clear likely scenario that is being priced in.
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.
Ed Moya