Pound Rallies As Brexiteer Leader Tentatively Backs May's Deal

Now that the House of Commons has gone full Lord of the Flies and seized control of Brexit from No. 10, Brexiteers like ERG leader Jacon Rees-Mogg and former Conservative Party leader Iain Duncan Smith have apparently realized that Theresa May wasn't kidding when she said it's either "this deal, no deal or 'no Brexit'".

After more than 30 Tories rebelled against the government last night to help pass the Letwin Amendment, guaranteeing that a series of 'indicative votes' on alternatives to May's deal (including a lengthy Brexit delay and the possibility of holding another referendum) will be held on Wednesday, rumblings that the ERG and DUP might finally relent and back May's deal have apparently been confirmed by Rees-Mogg himself.

During Tuesday's episode of his podcast "The Moggcast", JRM said he'd be willing to back May's deal, because leaving under the conditions imposed by the withdrawal agreement would be preferable to "never leaving at all" - though "no deal" would still be preferable to May's deal.

The pound rallied as traders once again hoped that a 'no deal' Brexit might finally be averted.

GBP

If more Brexiteers join with JRM and Dunan-Smith, the pound could see even more upside. But the real test will be winning over the intransigent DUP - the 10 unionist MPs from Northern Ireland who have proved to be the biggest thorn in May's side during the nearly three years since the Brexit referendum. Then again, given the number of Tory rebels who have already crossed May, even finally winning over the Brexiteers might not be enough for May to pass the withdrawal agreement.