Breaking News
0

Forex - Pound Rallies as May Looks to Avoid Brexit Bill Defeat

BrexitJun 12, 2018 17:27
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.

Investing.com - The pound rallied on Tuesday afternoon as it looked like Theresa May had avoided defeat in the first round of votes on the House of Lords’ EU Withdrawal Bill amendments, particularly the ‘meaningful vote’ amendment.

Over three sessions on Tuesday and Wednesday, parliament is debating fourteen amendments to the EU Withdrawal bill tabled by the House of Lords. The House of Lords sent fifteen amendments to the House of Commons, however the government agreed with one regarding replicating EU law in UK law after Brexit and continuing participation in EU agencies.

Following the first round of voting, the government looked to have secured a last minute victory by winning over rogue Tory backbenchers.

Amendment 19 on the ‘meaningful vote’ from the House of Lords would have weakened Theresa May’s negotiating position as it would have allowed parliament to vote down the Brexit deal, and then send May back to the negotiating table in Brussels.

During the debate, Conservative MP and Solicitor General Robert Buckland said that he was willing to discuss Tory MP Dominic Grieve’s amendments to the 'meaningful vote'. The promises of further government amendments to Grieve's bill may have swayed Tory rebels, meaning that the Theresa May is able to clinch a narrow win.

The amendment as suggested by Dominic Grieve, who defeated the government in December by ensuring parliament would be able to vote on the final deal, looks to allow parliament to take charge if there is no deal, ensuring that the UK does not ‘crash out’ of the EU without a deal.

If accepted by the government, Grieve’s amendment will return to parliament in the coming weeks. This is a concession the government may have had to make to get rebels on side from voting in favour of the more extreme amendment to the bill proposed by the House of Lords. It is rumoured the PM met with a number of rebel MPs on the day to persuade them to vote with the party. This came following the resignation of Justice Minister Phillip Lee on Tuesday morning because of the handling of the Brexit negotiations.

Sarah Wollaston, a potential Tory rebel tweeted at the end of the Commons debate that she would support the government: “Following further assurances that further Govt amendments will come forward in the Lords, I will now be supporting the Govt”.

The vote in the House of Commons on the 'meaningful vote' will take place at 16:45 GMT.

During the debate, the pound was largely flat, dipping into the red. At 16:30 GMT, as the Commons rejected the first two Lords’ motions, the pound rallied to the day’s highs. GBP/USD jumped 0.30% to 1.3420, while EUR/GBP was down 0.31% to 0.8782.

The pound rallied against most major currencies, with GBP/JPY lifting 0.48% to 147.93 and GBP/CHF up 0.20% to 1.3210.

The pound rebounded from 2-week lows earlier in the session on robust labour figures from April. As expected, unemployment remained at the decades-low 4.2%, while average earnings excluding bonuses grew 2.8%, missing expectations of 2.9% growth.

Investors will be watching the release of consumer price index for May due to be released on Wednesday. CPI is expected to be 2.5%, higher than April’s 2.4%.

Forex - Pound Rallies as May Looks to Avoid Brexit Bill Defeat
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email