Has Theresa May weathered the storm?

20 November, 2018

Joe Goodwin

Yesterday was a relatively quiet day in terms of Brexit developments in what is expected to be an intense week ahead.

A number of ‘letters of no confidence’ have been submitted by MP’s. 24 of which are known to the public though there are likely more than the public is unaware of. Crucially the threshold of 48 has not been reached and opponents admit they do not have sufficient numbers.

Theresa May’s speech at the CBI conference was relatively warmly received by business leaders. May reiterated at the conference that this is the best deal we’re going to get and that she is “determined to deliver it”. Angela Merkel also commented “…We have a document on the table that Britain and the remaining 27 EU states have agreed… There is, as far as I am concerned, no question of further bargaining at present.”

The DUP fired a ‘warning shot’ hours after May said she was determined to deliver Brexit by refusing to support a crucial government finance law and also supported an amendment proposed by the Labour Party.

Do traders believe that the EU can still concede ground on the Brexit deal? Possibly, but there remains plenty of ground on which to suggest further downside risk. Yesterday the pound lost more ground against the Euro, falling from 1.13 to 1.1220, against the dollar the pound remained stable at 1.2850.