15/01/2019 – May Urged MPs To Back Her Brexit deal

GBP

The Pound strengthened yesterday after May urged MPs to back her Brexit deal “for the country’s sake” ahead of the meaningful vote scheduled for this evening where Prime Minister Theresa May is widely expected to be defeated. She warned of “paralysis in Parliament” if the deal is rejected and said trust in politics would suffer “catastrophic harm” if Brexit didn’t happen.

May also declined to categorically rule out an extension to article 50 on the eve of the parliamentary vote on her Brexit deal, saying she wanted to deliver a “smooth and orderly” departure from the EU.

Tabloids reported news that MPs will also get a chance to reshape the deal by tabling amendments to it. The government has indicated it has already accepted one amendment to Tuesday’s vote which was proposed by Conservative MP Hugo Swire, which accepts the government’s deal as the EU Withdrawal Bill but includes provisions to:

(1) Make the government report to Parliament in March 2020 on the status of the Northern Ireland backstop.

(2) Give Parliament a vote on whether to extend the 21-month post-Brexit transition period, which would end in December 2020

(3) Give Parliament a vote on whether to implement the backstop

(4) Impose “a duty” on the government to agree a future relationship with the EU, or alternative arrangements, within one year of the backstop coming into force

These will only come into force if MPs vote to back the PM’s Brexit deal.

Key Announcements

13:30 – USD: Producer Pricing Index is expected to fall to -0.1%
15:00 – EUR: ECB President Draghi speaks
19:00 – GBP: Parliament Brexit Vote