Blink and you will miss it. For Over 1000 days Brexit news and updates, whilst dramatic, was often spaced, providing observers time to reflect and analyse. However, the closer we get to the March deadline (remember as things stand we are still leaving in 7 days) the updates and developments are coming quicker and quicker. The latest overnight is that the EU are willing to offer an extension until 22nd May which is short of the extension that Theresa May was pushing for until 30th June. However, in another Brexit twist (George R.R Martin should be taking notes!) the EU have added the caveat that if May’s Withdrawal Agreement is rejected next week then the extension only runs until 12th April. On the surface this seems a sensible and logical move from the EU, however they may have missed the fact that John Bercow may still not grant a Meaningful Vote 3.0 and MPs may get riled by the EU holding a gun to their heads.
Elsewhere, the Bank of England also kept rates on hold with all 9 members of the voted to keep rates at 0.75% and despite raising its growth forecasts for the current quarter, the pound had a torrid day. We have long maintained that the GBP/USD 1.30 level has been the border between Brexit certainty vs. uncertainty and now the pound is peering over the cliff edge as it lost over 1% against the dollar yesterday, making it the worst day since the start of the year.