Pound Pares Gains As May Introduces New Brexit Plan

Update 4: Calling her latest offer a 'rehash' of earlier offerings, Labour Leader Jeremy Corbyn put the last nail in the withdrawal agreement coffin by announcing that Labour would not support the measure during its fourth go-round in the Commons.

  • CORBYN: MAY IS ONLY OFFERING `TEMPORARY CUSTOMS UNION'
  • CORBYN: LABOUR IS DEMANDING PERMANENT CUSTOMS UNION WITH EU
  • CORBYN: LABOUR WILL NOT SUPPORT MAY'S BREXIT DEAL
  • CORBYN: MAY'S BREXIT OFFER `REHASH' OF WHAT SHE HAD BEFORE

* * *

Update 3: Not long after the conclusion of her speech, a spokesperson for No. 10 told MPs that May would continue to make the case against a second referendum, and that she would set out exit date no matter what happens with the vote when she meets with Graham Brady in June.

  • MAY WILL CONTINUE TO MAKE THE CASE AGAINST 2ND REFERENDUM
  • MAY HASN'T YET DECIDED WHETHER TO WHIP 2ND REFERENDUM VOTE
  • MAY WILL MEET BRADY IN JUNE TO SET EXIT DATES NO MATTER WHAT

* * *

Update 2: The confusing 'new deal' offered to the Commons by May on Tuesday reeks of desperation, and cable is clearly not impressed.

Cable

Though it's still on track to break its losing streak.

Cable

May has unveiled her latest "new Brexit deal" to the Commons, and it's mostly a smattering of previous promises packaged into one. The deal will set forth legal obligations to cede more control of the second round of negotiations to Parliament, include safeguards to decrease the likelihood that the backstop will ever be triggered, and give the opposition the chance to vote to remain in a temporary customs union with the EU.

May also offered assurances about preserving workers rights and environmental standards, all while dodging questions about the timing of her possible resignation.

"Reject this deal and leaving the EU with a negotiated deal would be dead in the water," May warned.

Most importantly, if MPs back the deal in the first stage, the Commons will have the opportunity to vote on whether to hold a referendum - except it would be between May's new deal and 'no deal.'

The text of the bill will be ready in the next few days.

Here we go again...

* * *

Update: Reports citing a leaked copy of May's speech claim that May will offer MPs the chance to vote on whether to hold a second Brexit referendum as part of the next withdrawal bill.

* * *

Brexit-related volatility is back for the pound as reports that Theresa May might offer MPs a vote on a customs union or second referendum has renewed hopes that Brexit might be abandoned altogether.

May reportedly ran the plan by her cabinet, but according to some reports, she backed down after Brexiteers in her cabinet refused to back the plan.

Earlier today, the pound reacted to news that May would be holding a press conference to outline a new Brexit proposal.

  • MAY POISED TO OFFER MPS VOTE ON HOLDING 2ND BREXIT REFERENDUM
  • VOTE ON 2ND REFERENDUM CONDITIONAL ON BILL PASSING 1ST STAGE
  • PARLIAMENT WOULD VOTE ON PUTTING BREXIT DEAL TO REFERENDUM

It's unlikely that a second referendum would be approved, as the indicative votes held back in March showed it wouldn't have the support of a majority of MPs, but the fact that a "People's Vote" on May's deal is back in the conversation is enough to ignite hopes that Brexit will simply be abandoned.

GBP

May will be speaking shortly. It's widely expected that she will again promise to lay out a timetable for her departure should MPs back her Brexit deal. Yet, as analysts have pointed out, passing her deal remains extremely unlikely. One called this "her last roll of the dice."

Tags