Things are still looking bleak for May ahead of the meaningful vote tomorrow
- EU to increase Brexit divorce payment if the UK asks for extension
- Only two members of Cabinet still support Theresa May - report
- A look at the Brexit news that weighing on the pound as the new week begins
With May facing an imminent defeat in parliament tomorrow, the only certainty is that we're headed for more uncertainty in the coming days/weeks. And that's always something that will weigh on whichever currency associated.
In this case, should May lose in tomorrow's vote, chances are we're headed for a Brexit extension - barring some extraordinary circumstance that a European leader decides to veto it. But a Brexit extension by a couple of months doesn't solve the impasse between the UK and the EU, so it's not really going to resolve anything but prolong the uncertainty.
The only positive takeaway in all of this is perhaps that eventually we'll be headed for a second referendum down the road. And that could be something that will provide tailwind for the pound when the time comes.
But as mentioned last week, for now, it looks like things are to get worse before they get any better for the currency; not until the result of the meaningful vote is out of the way.
