In the European market on Thursday, the pound fell against the US dollar. Although the overall trend of the US dollar index was weak, the pound continued to slow down, as the British Labor Party leader Corbin said in an intraday speech that it would oppose Teresa May's Brexit agreement.
British Labor Party leader Corbin said that the Labor Party will vote against Prime Minister Theresa May's Brexit agreement. Prime Minister Theresa May’s Brexit strategy has intensified the split in Britain. If the Brexit agreement is not passed, a general election must be made. The Labour Party retains all options, including holding the referendum again.
Affected by this news, the pound fell about 30 points in short-term, and now trading at 1.2734 level.
(GBP/USD hourly chart, source: FX168 Financial Network)
After the fight against the parliament fell into disarray, British Prime Minister Theresa May had to publicly calculate the Brexit "B plan." Because there are more and more signs that the British Parliament will veto her agreement with the EU, she is trying to control the direction of the situation.
Teresa May spokesperson James Slack told reporters in London that if the Brexit program was not taken, our intention was to respond quickly and determine the way forward. Slack’s statement was an important shift, clearly revealing that Teresa May’s team knew she was losing ground in the battle for parliamentary control of the Brexit direction. Earlier, the House of Commons set a new obstacle to Teresa May's preparations for a non-agreement of Brexit in a vote on Tuesday.
Less than 80 days left before the official departure from the EU, there is not much time left for the UK to reach an agreement and avoid a costly non-agreement.
Official analysis shows that if the UK leaves the EU on March 29 without an agreement, it could trigger a serious recession, and the pound may fall 25%.House priceFalling 30%.
Although Teresa May had been forced to cancel the plan to vote on the agreement in December, because she was sure that the vote would be rejected, there is no indication that she can change the outcome.
Slack also said that the government was "surprised" by the Speaker of the House of Commons, John Bercow, to allow the vote to be voted, forcing Teresa May to speed up the response to the vote. Our intention has always been to respond quickly, and to provide certainty for the way forward when we lose a major vote, this is what we will do.
He also pointed out that the government accepted the amendment and limited the backup period to one year. The amendment means that the UK will seek the EU to agree to the same timetable, and the technology solution can replace the backup plan to avoid a hard border between the UK and Ireland. If Teresa May loses the vote, the UK will look for alternative solutions.
(Article source: FX168)