May to Speak Ahead of Vote Delay

Sterling tumbles 170 pips or 0.93% to $1.2605 on PM May's decision to delay Tuesday's crucial Brexit vote in Parliament. May will address Parliament in a speech at 15:30 GMT/London. The gravity of the situation is highlighted by the unwillingness of the DUP and EU to renegotiate the Brexit Withdrawal Agreement as well as the low popularity of the vote. Japanese GDP was revised lower in early-week trading. The USDCHF Premium short was closed for 140 pip gain.

Watching Backstop Amendment

PM May was banking on the possibility of garnering sufficient support from several Labour MPs to counter the DUP's insistence to reject the vote. Whether May will table new amendments to Parliament such as the Backstop (potentially keeping the entire UK in the Customs Union so as not to trigger an Irish border) and/or to return to Brussels for further modifications is one issue. We expect May to suggest going to Brussels (again) for further negotiations, once she has (if) obtained new assurances from Brexiters.