Blink, and you will miss it. Over 1000 days of Brexit news and updates, while dramatic, was often spaced, providing observers time to reflect and analyse. However, the closer we get to the March deadline (remember as things stand the UK is still leaving in seven days) the updates and developments are coming quicker and quicker. The latest overnight is that the EU is willing to offer an extension until May 22, which is short of the June 30 extension that Prime Minister Theresa May was pushing. However, in another Brexit twist (George R.R Martin should be taking notes!) the EU has added a caveat. If May’s Withdrawal Agreement is rejected next week, then the extension only runs until April 12. 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 nine members of the voted to keep rates at 0.75 percent, and despite raising its growth forecasts for the current quarter, the British Pound had some torrid moments in yesterday’s trading session. We have long maintained that the GBP/USD 1.3000 handle has been the border between Brexit certainty versus uncertainty, and now it is trading at 1.3185, but the question is, is the market really sure of Brexit results?