British Prime Minister Theresa May is expected to bring her second Brexit deal back to Parliament on Tuesday for a meaningful vote. Can she win this time around?
March 12, 2019 | SQUARED DIRECT – Following talks between Theresa May and Jan Claude Juncker yesterday in Strasbourg, British MPs are going to vote again on May’s second Brexit deal today afternoon around 7 pm GMT.
May’s second Brexit deal: What to expect?
Hoping enough has been done to convince the House of Commons regarding the Irish backstop, the prime minister expects the deal to pass parliament this time around, after being strongly downvoted two months ago, in January.
The prime minister of the UK and Mr Juncker discussed signing off a new package to reassure critics of the exit deal who were concerned with potentially serious custom union issues. The new package added a legally binding statement that ensured no further negotiations of the border issue would take place by both sides after Brexit.
The EU, however, is not so sure that the new concessions that were given yesterday are going to be enough to overturn the colossal defeat Mrs May’s deal suffered in January.
The government of the UK has stated that if the Deal is rejected, two consecutive votes in the House of Commons will be taking place. The first one, scheduled for tomorrow, will be on whether the UK should leave the Union without a deal. The second one, scheduled for Thursday, will be on whether to delay Brexit. The EU has agreed to delay Brexit until May 24 if the House of Commons votes for a delay.
Markets reaction to second Brexit deal
The markets have reacted with optimism ahead of the second vote due to revised Brexit deal. The pound sterling has risen above $1.32 this morning. Earlier, in Asian afternoon trading, the pound was strengthened around 0.4 per cent reaching a high of $1.3288.
The Bank of England has advised some of the UK’s lenders to triple their holdings of easy-to-sell assets to be able to cope with a possible no-deal Brexit and the severe volatility that is forecasted to ensue in the markets because of it.
The Banks are modelling their balance sheets based on the scenario of them not being able to exchange currencies during a no-deal Brexit crisis. Lender’s liquidity levels are being monitored daily but the BOE is positive that UK Banks will have enough liquidity and capital to deal with even the worst possible Brexit outcome.
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