May Announces New Brexit Deal

GBP

Sterling railed on Tuesday after Theresa May announced she will allow MPs to vote on a second referendum if they back the EU withdrawal agreement bill. May is desperately seeking to deliver Brexit saying she has set out a ‘new Brexit Deal’ telling MPs they have ‘one last chance’ to finalise Brexit.

The PMs new revised plan includes another referendum vote, a vote on different customs options including a temporary custom unions agreement and alternative arrangements to the backstop problem till 2020. Furthermore, the bill will also include new guarantees in workers rights, environmental protections. May said if MPs reject the bill then a negotiated exit would be ‘dead in the water’ and Brexit could be stopped.

May speaking on Tuesday said the deadlock over Brexit was having a ‘corrosive’ impact on British politics and stopping progress in other areas. She went on to say "we are making a new offer to find common ground in Parliament and that is the only way to deliver Brexit." She said MPs would have the chance to vote on whether to hold another referendum before the exit agreement was ratified and, if MPs backed it, the government would make the necessary arrangements.

Lastly, May opposed the idea of another referendum but said she recognised the ‘genuine and sincere’ feelings on the issue in Parliament. May has urged MPs to back the Withdrawal Agreement Bill at its first parliamentary hurdle in and then "make the case" for another public vote when the bill was examined in detail. She went onto say ‘I have compromised, now I ask you to compromise too’.

Key Announcements

09.30 – GBP: Consumer Price Index (YoY); Expected to rise to 2% from previous 1.9%
18.00 – USD: FOMC Meeting Minutes