FxPro: ‘Brexit means Brexit’. Still

Another dramatic evening last night, as the UK Parliament votes down amendments to the draft Brexit agreement that could have potentially paved the way to an extension and a second referendum. The MPs instructed the PM to return to Brussels, re-negotiate the Irish backstop and come up with a better solution than a hard border between Ireland and Northern Ireland.

As it stands, the EU leaders are refusing to re-open the withdrawal agreement, however, the clock is ticking and them not budging on any of their red lines will mean that the UK leaves without a deal – something that neither side wants.

Meanwhile, after rising to the highs of 1.3215 last week in reaction to a possibility of there being a Brexit extension or a second referendum, the pound has dropped by 0.5% in the last 24 hours and the GBPUSD pair is now at 1.3070.

The situation is still very tense as we watch the PM go back to Brussels with the Parliament and country behind her to strike a deal.

Alexander Kuptsikevich, the FxPro analyst