Brexit developments were dealt some fresh optimism during the early morning trade yesterday. Tory member and ERG (European Research Group) Chair, Jacob Rees-Mogg, conveyed his support to the British PM Theresa May’s Brexit plan over twitter. He feels any alternative to May’s deal will be a ‘soft’ Brexit so alluded to him favoring the deal on the table. Market reaction was positive, and Sterling moved higher across the board but I’m sure we have learnt by now a new day brings new risks when it comes to this subject. The DUP, a key player in getting the deal across the line, have yet to offer their full support so still it appears incredibly unlikely MV3 will pass if put to vote.
Today we have yet another round of indicative votes to try and see if there is a path that the majority of government would likely support. Remember, the indicative Brexit votes are not legally binding and we do not know how the EU will respond, although EU leaders will probably welcome a softer stance. This, however, will likely require a longer extension to negotiate. There is still a risk an overall majority will not be clear in the evening votes and its back to the drawing board or bringing Mays deal back to the vote on Thursday or Friday.