As expected Prime Minister Theresa May lost her Brexit vote in the commons last night, the heaviest loss for UK Prime Minister in nearly 100 years. As a result of the loss the leader of the opposition, Jeremy Corbyn has called for a vote of no confidence, this is scheduled for 7:00 pm tonight. Should the PM lose she will have to resign.
Following yesterday’s result he pound has actually found some support, something that my colleague Alastair predicted in his post yesterday.
What now for the pound?
For me it is highly likely that she will pass the vote of no confidence. The Democratic Unionist Party (DUP) have already come out in support of her along with a number of her conservative counterparts. For me I believe she will win and this will put to bed the chance of a general election and a ‘no deal’ Brexit, I also believe this outcome will lend further support to the pound.
Of course the next steps following the no confidence are unsure wioth the EU already saying they are not willing to negotiate further. This, again, is just them playing hard ball and I believe concessions will be made. My view is that an extension of Article 50 is most likely, with most analysts expecting a delay of 3-6 months to allow a new Brexit deal to be negotiated – we will then have the pleasure of discussing Brexit for the months to come………….