MV3 remains dead on arrival
The DUP surely isn't shy from kicking May when she's down as Jim Shannon earlier said that the party won't back the deal as long as the backstop is present and then we now we have Sammy Wilson calling May's deal a "death warrant".
That is continuing to kick the pound lower on the day with cable now falling to a low of 1.3158, below yesterday's low of 1.3160. There is some minor support around 1.3147 but if price gets a firm break below the 100-hour MA (red line), sellers will regain near-term control and we could see a bit more of a dip later on.
As it stands, it remains to be seen how May will proceed after the indicative votes amendment passed in parliament yesterday. The worst thing that could happen for the pound is if May backs down and the indicative votes are split and fails to garner a majority.
That will just in turn highlight how fractured the UK political system really is at the moment and offer traders nothing new in terms of Brexit developments.
There's still plenty of uncertainty at play but unless the indicative votes options get trimmed down or May's Brexit deal starts rising from the dead, pound rallies will stay sold in the short-term until further clarity is seen.
