UK PM May accepts Parliament vote over Brexit terms, GBP shorts run to the exits
|As reported by Bloomberg, UK Prime Minister Theresa May has accepted a Parliamenty vote over her Brexit plans, but asked lawmakers that the outcome would still give her room to negotiate fair deals.
The Sterling has bounced aggressively on the news, allowing GBP/USD to re-visit 1.2250+ from 1.21, with plenty of shorts being stopped out in what has been a major rush to the exits.
Blomberg notes: "The decision may calm investors after they dumped the pound on concern May was taking a gung-ho approach to the negotiations.Parliament will debate on Wednesday a motion from the opposition Labour Party calling for a “full and transparent debate on the government’s plan for leaving the EU” and for Parliament to be able to “properly scrutinize that plan” before she begins formal talks. The request is supported by some lawmakers from May’s own Conservative Party."
"In response, May late on Tuesday tabled an amendment that effectively accepted the motion, adding that there shouldn’t be an attempt to block Brexit or undermine the negotiating position of the government; while the concession is unlikely to stop Britain’s departure it does give lawmakers in favor of maintaining close ties to the 28-nation trade bloc -- probably more than half of the chamber -- a tool to pressure a premier with only a slim majority in Parliament", Bloomberg added.
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