The European Union is considering a new proposal for the Brexit backstop problem. Accordingly, they will wait for the UK to look at it, and there will be a response from the EU depending on whether the offer appeals to the UK or not. However, it does not exactly meet UK requirements, and the proposal includes concentrating on the Brexit tracking system, which has already been added to the main proposal.
It seems the EU is giving way to May. However, the risk is that a majority will not be reached in Parliament for the approval of the offer, but given the recent events, the chances that Parliament is currently supporting May and the EU proposal are bigger.
The pound reaches a 45 pips jump. Given the lack of confidence in market participants about the success of the offer, there is a risk that bears will squeeze the pounds down again, which happened with a 50 pips move in the opposite direction.
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