As several sellside desks have summarized, today will be a binary one for GBP: either deal or no deal. And following an early swoon in cable after speculation rose that a deal would be elusive, the pound soared above 1.35 following a report that EU chief brexit negotiator Barnier told MEPs that a breakthrough is likely today.
UK Prime Minister Theresa May has struck a so-called confidence and supply deal with Northern Ireland’s Democratic Unionist Party, one which will give the Conservatives sufficient votes to pass the Queen’s Speech and the budget, while Northern Ireland will get an extra €1 billion over two years as a result of the deal.
Britain’s security Service, MI5, has increased the threat level to Great Britain from Northern Ireland-related terrorism from moderate to substantial. This means that an attack in England, Scotland or Wales is “a strong possibility”. The Home Office was working closely with the police and other relevant authorities to ensure appropriate security measures were put in place, the home secretary asaid The BBC reports: Home Secretary Theresa May said the level, set by security service MI5, “reflects the continuing threat from dissident republican activity”.