Sterling rises as traders buy into soft Brexit noises
Traders banked on the likelihood of a ‘no deal’ Brexit diminishing as sterling leapt to a two month high against the dollar on Wednesday
The pound peaked at 1.3079 against the US currency as noises from both Westminster and Davos suggested a softer Brexit was likely.
In London, Labour leader Jeremy Corbyn held a meeting with backbenchers behind a plan to stop the UK leaving the EU without an agreement.
A party source told CityAM it was a “good and positive” meeting, and the leadership are seriously considering backing an amendment to the government's withdrawal bill, which could be voted on by MPs next Tuesday.
At the World Economic Forum in Switzerland, prominent figures including Tony Blair talked up the possibility of Brexit being halted altogether thanks to another referendum.
In a counter-move to the campaign to stop Brexit, Conservative MP Jacob Rees-Mogg has urged the Prime Minister to take drastic action to secure the UK’s departure from the EU.
In a speech to Brexit supporters, during which he criticised MPs' efforts to frustrate the UK's exit from the EU, he said: “If the House of Commons undermines our basic constitutional conventions, then the executive is entitled to use other vestigial constitutional means to stop it, by which I basically mean prorogation [suspending parliament].
"Prorogation normally lasts for three days, and any law that is in the process before prorogation falls.
“I think that would be the government’s answer. That is the government’s backstop, to use a choice phrase."
May is standing firm in her rhetoric of not ruling out a 'no deal' exit from the EU.
During her weekly clash with Corbyn at Prime Minster’s Questions, May also hit out at attempts to extend the negotiating period beyond March 29.
She said: “That does not solve the issue that there will always be a point of decision. The decision remains the same: no deal, a deal or no Brexit. I am delivering on Brexit. I want to do it with a deal.”
May criticised Corbyn for refusing to meet her for talks about how to break the parliamentary deadlock on her withdrawal deal.
“He has been willing to sit down with Hamas, Hezbollah and the IRA without preconditions, yet he will not meet me to talk about Brexit,” she said.
A spokesman for the Labour leader claimed the comment was “demeaning to the seriousness of the situation”.
On Thursday, May will hold meetings with trade union chiefs, including Unite general secretary Len McCluskey, as she seeks to drum up support for her plan.