The Pound jumped close to a four-week peak and its highest since late January against the Dollar this morning on reports Theresa May was considering delaying the Brexit deadline. Sterling was up 0.55 per cent at $1.3154 at the time of writing, just below a session high of $1.3162.
After months of insisting Britain would leave the European Union on 29 March without a deal, the UK prime minister will today offer MPs the chance to take a no-deal Brexit off the table.
May will face a furious backlash from Tory Eurosceptics when she announces the U-turn in her Commons statement, raising the prospect of a “short” delay in Brexit. She will also face fierce opposition from Brexiteer ministers, with some of them claiming the country could flourish after a no-deal exit.
Tory Eurosceptics fear that any delay in the UK’s departure from the EU could lead to mounting pressure for a second referendum to end the parliamentary stalemate – the move the Labour Party is now prepared to back.
Across the pond, investors are looking to the Federal Reserve’s latest view on the economy and monetary policy. Fed Chair Jerome Powell will address the Senate Committee on Banking later today in the first of a two-day appearance before lawmakers.
Powell and other Fed policymakers have indicated they favour patience before raising key lending rates again due to recent signs of slowing economic growth. The futures market implied traders bet the central bank would not raise interest rates at all in 2019.
May risks another revolt by pushing Brexit vote
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