Traders Buy Into Soft Brexit Noises, Sterling Rise


On Wednesday, traders speculated on the possibility of a ‘no deal’ Brexit waning as the sterling rose to a two month high against the dollar.

The pound rose at 1.3079 against the dollar as noises from both Davos and Westminster suggested that a softer Brexit was possible.

In London, Jeremy Corbyn, the leader of the Labour Party, held a meeting with backbenchers behind a plan to stop the United Kingdom leaving the European Union without an agreement.

A source revealed that it was a “good and positive” meeting, and the leadership are seriously considering supporting an amendment to the withdrawal bill of the UK government, which could be voted on by the MPs next Tuesday.

During the World Economic Forum in Switzerland, some prominent figures which included Tony Blair discussed the possibility of Brexit being suspended altogether thanks to another referendum.

In a counter-move to the campaign to halt Brexit, Jacob Rees-Mogg, a Conservative MP, has called on Prime Minister Theresa May to take drastic action to secure the departure of the United Kingdom from the European Union.

In a speech to the supporters of Brexit, he said: “If the House of Commons undermines our basic constitutional conventions, then the executive is entitled to use other vestigial constitutional means to stop it, by which I basically mean prorogation [suspending parliament].” He criticised the efforts of the MPs to frustrate the exit of Britain from the bloc.

He added: “Prorogation normally lasts for three days, and any law that is in the process before prorogation falls.”

He continued: “I think that would be the government’s answer. That is the government’s backstop, to use a choice phrase.”

PM May is standing firm in her rhetoric of not ruling out a ‘no deal’ exit from the bloc.

During her weekly clash with Corbyn at Prime Minster’s Questions, PM May also hit out at the attempts to extend the negotiating period beyond the 29th of March.

She stated: “That does not solve the issue that there will always be a point of decision. The decision remains the same: no deal, a deal or no Brexit. I am delivering on Brexit. I want to do it with a deal.”

PM May slammed Corbyn for refusing to meet her for negotiations about how to break the parliamentary deadlock on her withdrawal deal.

She stated: “He has been willing to sit down with Hamas, Hezbollah and the IRA without preconditions, yet he will not meet me to talk about Brexit.”

A spokesperson for the Labour leader said that the comment was “demeaning to the seriousness of the situation.”

Tomorrow, May is scheduled to hold meetings with trade union chiefs, including Len McCluskey, the Unite general secretary, as she tries to drum up support for her plan.