Speculation that Theresa May will abandon plans for Tuesday’s vote on her Brexit deal is rocking the financial markets
- Latest: Pound rocked by reports May will pull vote
- Sterling has hit 18-month low of $1.262 today
- Politics Live: May holds emergency cabinet meeting
A further burst of selling pressure is threatening to send sterling below $1.26, for the first time since June 2017.
As you can see, the pound has suffered a series of sickening jolts in the last few hours, since news broke that Theresa May was holding an emergency call with the cabinet.
PM expected to say that she’s listened to concerns about the backstop and is heading back to Brussels.
Sources tell me PM will return to Brussels in an attempt to renegotiate the backstop. Statement at 3.30.
So @jeremycorbyn – if Labour, as official opposition, lodges motion of no confidence in this incompetent government tomorrow, @theSNP will support & we can then work together to give people the chance to stop Brexit in another vote. This shambles can’t go on – so how about it?
The pound is continuing to lose ground, as traders prepare to hear from Theresa May this afternoon.
Sterling is now down a whole eurocent against the euro at €1.1078, the lowest since September. That means the euro is worth more than 90p.
Cable LOD, 1.2630 now, fresh 18-month low. pic.twitter.com/VLLvMlaUog
The risk of a disastrous vote scenario was too high and therefore they felt it prudent to delay for now. Don’t honestly know if that is a good or bad thing.
Either the vote was going to be so bad that postponing it is a good thing, or the postponement of the vote tells you how far away from a good scenario they are.