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In perhaps one of her last actions as Prime Minister, Theresa May developed a “new” Brexit offer with her Cabinet this morning. In essence, May will offer Parliament a choice on customs arrangements and a vote on a second referendum…IF they pass her withdrawal agreement bill.

There was little reaction to today’s UK data. Clearly the focus remains on Brexit. But with the prospects of a softer exit or no Brexit at all, we continue to believe that the pound will be able to climb in the coming weeks and months.

When Brexit-related uncertainty was at its peak towards the end of last year and in early parts of 2019, the GBP/USD and other pound crosses fell sharply across the board. Yet, since the turn of the year, the GBP/USD has actually been pushing higher despite the bears throwing the kitchen sink at the beleaguered currency.

The British pound was the weakest major currency yesterday on the back of reports that there was no agreement on a customs union between Labour and Conservatives. It fell further this morning in reaction to the latest consumer inflation data.

As my colleague Matt Simpson succinctly noted last week, traders have said “meh” to the 6-month “flextension” to Brexit. While squabbling between the different political parties continues apace, it’s now unlikely that we’ll see any near-term progress on Brexit, so traders may now turn their attention back to UK economic data.

The EU granted the UK’s flextension until 31st October, four-month longer than PM May requested. Yet whilst today’s ‘meh’ reaction points towards Brexit fatigue, the coiling nature of GBP suggests volatility could be brewing.

After a quiet start to the week, market-moving data has finally picked up, with traders keying in on three major events...

The Brexit merry-go-round continues to turn, with today’s news highlighted by the potential for a “flextension” to Brexit negotiations...

It has been a rather volatile day for the pound, as investors reacted to the latest Brexit headlines and data from both sides of the pond. At the time of writing the GBP/USD was still just about holding in the positive territory.

Despite the uncertainty, the FTSE 100 is still up a good 9% year-to-date, thanks to a weak pound and outlook for global interest rates to remain low for longer.

So, the UK parliament couldn’t find a consensus on Brexit last night after MPs voted on eight different options and – lo and behold – there was majority for absolutely none of them.

Over 1,000 days after the UK narrowly voted to leave the European Union, it’s still not remotely clear how the new relationship will look, who is in charge…and even whether the UK will leave at all!