Speaking to the BBC in an interview to mark the final six months before Britain formally leaves the EU, the PM stated that “It’s either my deal or no deal,” in a clear warning to MPs who seek to frustrate her attempts to reach a deal with the EU.
The PM has faced considerable opposition from within her party in regards to her Chequers plan with both pro-Brexit and pro-remain MP’s threatening to rebel when the deal is put before Parliament later in the year.
One of the proposals earning the most ire from Mrs May’s pro-Brexit colleagues is the plan for the UK to adopt a ‘common rulebook’ with the EU in order to retain access to the European single market.
Writing in this morning’s Daily Telegraph, the former foreign secretary Boris Johnson claimed that the PM’s Brexit plan “would mean for the first time since 1066 our leaders were deliberately acquiescing in foreign rule.”
While the pound has risen in recent weeks on hopes that the UK and EU are closer to reaching a deal, fears that domestic politics could still scupper any agreement has caused considerable downside to GBP exchange rates.
At the same time the euro is trending flatly this morning following the release of the Eurozone’s latest CPI figure.
August’s final CPI reading offered no surprises, falling in line with the previous estimate and confirming that while headline inflation slowed slightly last month it still remains within the European Central Bank’s target range of 2 per cent.
Looking ahead, the GBP/EUR exchange rate could see some more dramatic movement tomorrow when ECB President Mario Draghi speaks.
If Mr Draghi warns over the potential impact US-led trade tariffs could have on the Eurozone and wider global economy we can expect to see the euro swing lower.
Meanwhile, in the absence of any major UK data, movement in the pound in the early part of this week is likely to be dictated by Brexit sentiment as markets brace for the latest round of talks.