On Tuesday (December 18) the sterling is gradually restoring positions vs the greenback with the exchange rate reaching some $1.2680 now. The positive dynamics of the British currency is related to one and the same issue – Brexit voting in the UK parliament. It has been reported lately that the previous vote scheduled on December 11 was cancelled, while the new date has been slated for January 14. It is interesting what tactics Theresa May may choose this time. Specifically, the last-time cancellation of the voting was caused by a lack of the Brexit strategy in the Parliament. At the same time, with cancelled voting Theresa May again noted two possible scenarios – the Parliament can either accept the proposed agreement with Brussels, which opens the door for the soft-Brexit or reject it leading to no deal-Brexit with heavy economic consequences in the UK.
As a result, there is no progress on this issue so far. However, some internal work on it is performed anyway.
After the release of the new voting date, the Labour Party stated that it would be unacceptable to wait another month. The members of the party added that they represent opposition to May's party. As a result, the Labour party made another proposal regarding the non-confidence vote in the Prime Minister. This means that the UK is actively creating new problems for Theresa May rather than preparations for the Christmas.
Nevertheless, the new non-confidence vote along with its date is vague. Meanwhile, the sterling no longer depends on such grey areas, so it is rebounding until more notable reports come out.