Brexit has been the key focus for the market in overnight trading with the Great British Pound plummeting across most of the majors. The Sterling started the session in mostly positive territory, trading above 1.3. The latest Brexit headlines however sent the Pound crashing more than 2% to a new low of 1.2730. Opening this morning at 1.2779, the Sterling is up against the ropes as the deadline for an agreement approaches.
The headlines continue to come in thick and fast with the latest news being on the decidedly negative side for Prime Minister Theresa May. The UK-EU withdrawal agreement that the Cabinet signed off on yesterday failed to achieve wide spread support and triggered a series of ministerial resignations. Notably, the now former, Brexit Secretary Raab and the Northern Ireland Minister Vara. More importantly however is the implications of the resignations as PM May will now have a hard time pushing the deal through Parliament and could face a leadership challenge. From here anything is possible, Article 50 could be extended and a fresh government installed. There could be a hard Brexit on March 29th or even a new referendum on Brexit. Alternatively, PM May might be able to push through her vision of Brexit.
The Market will look to keep a close eye on the Brexit headlines to close out the week with very little else to concern investors.