Sterling gaps down the week and stays the weakest one as it’s getting more unlikely for a Brexit deal within November. There was originally a planned emergency cabinet meeting today to approve a Brexit deal. But UK Prime Minister Theresa May dropped the plan due to resistance within her own cabinet. And it’s unlikely for May to come up with something by Tuesday’s regular meeting to secure enough support.
Irish backstop remains the sticky point. But now, it’s over the right for UK to unilaterally exit the backstop. EU and Ireland have been explicit that UK cannot do that. On the other hand, it’s unacceptable for some Tories that UK would have to be locked into the customs arrangement of the backstop forever.
Additionally, May is facing more rebellion even within the remain camp of the Tories. It’s rumored that four more pro-Europe ministers are on the brink of resignation, following ex-transport minister Jo Johnson’s departure last week.
