The pound fell vs. the US dollar on Friday as investors re-positioned in anticipation of potential negative Brexit headlines in the weekend papers. They didn’t quite eventuate, and GBP/USD has traded a flat range since markets opened this morning. In terms of getting any deal across the line, PM May is said to be seeking to convince various Brexiteers within her own party as well as DUP MPs by asking EU members for assurances, or better, on the Irish backstop. It’s thought that cross party talks would be a waste of time, with Labour MPs unlikely to support a “Tory” deal and/or keen to pin some blame in the future.
The PM will set out how she intends to proceed with the withdrawal agreement today, as she addresses parliament. MPs will also be given the chance to table amendments to any potential deal, one of which could mean we don’t end up with a no-deal. Article 50 could also be suspended if a withdrawal agreement isn’t agreed by this time next month.
The PM’s speech is the main event today and would be anyway even if any economic data was due for release. We expect GBP/USD to continue trading a narrow range in the lead up, sub 1.29 for the most part.