Is May going to pull the plug on tomorrow's vote?
GBP/USD falls to a low of 1.2692 and is now holding just above the 1.2700 handle as it stays supported from the Thursday low at the figure level. Various sources are confirming that Theresa May has called for an emergency Cabinet meeting, suggesting that it is likely she hasn't gathered enough support ahead of tomorrow's vote and may proceed to delay/postpone it.
Daily Mail:
"Cabinet ministers put on standby for emergency conference call with PM May in next half hour."
The Sun:
"The PM has called together all her senior aides for a meeting on the Meaningful Vote in No10 now. A decision on whether to pull it appears imminent."
The Telegraph:
"The Cabinet conference call is being held at 11.30. Ministers are now assuming she will delay the meaningful vote. One minister jokingly suggested she could be about to resign. This was, I repeat, meant as a joke although in the current climate..."
There is still plenty of uncertainty at this point in time and traders are looking at possible eventualities if this is announced, but so far the uncertainties that accompany the headlines are weighing the pound lower on the day.
Do be reminded that European officials remain adamant that the language and declarations made in the Brexit agreement will not be changed, so even if May postpones the vote, she's mainly delaying the inevitable because essentially nothing changes from here in terms of negotiating for a better deal.
And if she delays the vote, it'll put a dent in her political confidence and calls for a leadership challenge will grow. Potential no-confidence motion to follow? Calls for a second referendum? Or maybe even calling for no Brexit altogether? All still up for grabs at this point.
