On Wednesday (May 15th), the pound fell for the third consecutive day, and investors are digesting British Prime Minister Teresa May to re-launch the parliamentary vote.
British Prime Minister John claimed that she will vote on her withdrawal bill in the first week of June to get the UK to withdraw from the EU before the July parliamentary recess.
In a statement issued on Tuesday evening, a Downing Street spokesperson said: "Tonight, the Prime Minister met with the opposition leaders of the parliament to clarify our decision to summarize the dialogue and firmly implement the results of the referendum."
"We will therefore push the withdrawal agreement bill on June 3. If it is necessary for the UK to withdraw from the EU before the summer parliamentary recess, the time is tight."
The spokesperson added that although the talks with Labour leader Corbin are "active and constructive," the discussion will be conducted in the next few days and even weeks to "ensure the safe passage of the exit agreement bill and the United Kingdom." Successfully retreat."
However, the Labor Party denied that they had agreed to support the bill. A Corbin spokesperson said that the Labor Party leader suspected that the Prime Minister had provided any credible terms and claimed that the Labor Party did not agree to support the agreement in the case of Mei's clarification of the position.
“The Labour Party leaders expressed their doubts about the ability of the Shadow Cabinet to implement any compromise agreement by the Prime Minister.” They added that the government needs further action to ensure relevant commitments.
At the same time, the Conservative Party’s party, the Northern Ireland Democratic Unity Party (DUP), also said it would oppose the bill. "If the Prime Minister once again lets the parliament vote, the question is, 'Is there any change?'" said DUP Parliament leader Nigel Dodd. Ten DUP members voted against the previous three votes.
Therefore, it is difficult to see the current situation in which the British parliamentarians will reach an agreement on the exit agreement. If the stalemate does not break through, the British government will fail in the parliamentary vote for the fourth time, and Mei’s prime minister position will also be in jeopardy.
GBP/USD began to fall sharply after the news that the negotiations between the Conservative Party and the Labour Party on the Brexit strategy broke down, and fell below 1.29.
ING warned that if Mei really let the parliament hold the fourth vote on the Brexit agreement and failed, then she may eventually resign and make the tougher Brexit party. ING Forex Director Chris Turner expects that in this case, GBP/USD will fall to 1.28.
(Article source: FX168)