Brexit Series: Series of positive Brexit news flows might hit markets in coming weeks

After the outcome of this week’s voting at the UK’s House of Commons, we expect a series of positive news flow to hit the markets from both the UK and the European Union.

Earlier this week, Prime Minister Theresa May’s Brexit agreement with the European Union, which had the support of EU leaders, vehemently failed to pass through the UK’s House of Commons. The deal only received 202 lawmaker votes in favor, while 432 were against the deal. The so-called ‘Irish backstop’ was the major contentious issue. Immediately after the vote, the opposition Labour Party leader Jeremy Corbyn pushed the motion of no-confidence against Mrs. May’s government. Despite a massive defeat at the deal voting, the government survived the motion but only by a narrow margin. It received 317 votes of confidence, while 306 were against.

After this week’s jitter, we expect the sets of good news to hit the market as lawmakers would be more willing to cooperate after this week’s turmoil and as the chance of UK, securing a better agreement has increased dramatically. The tough stance of EU is likely to loosen.

The news flows are likely to act as positive catalysts for the pound, which is currently trading at 1.285 against the USD.