The PM chose her words carefully yesterday evening when she stated the draft had been backed by the majority of the Cabinet, as shortly after reports emerged that 10 Cabinet members completely opposed the agreement and rumours emerged on mainstream media stations such as sky news and the BBC that Cabinet members are debating on whether to resign. Furthermore the PM should also be concerned about backbenchers within her Conservative Party, as speculation grew throughout the evening and this morning that more MPs were filing letters of no confidence, and according to the BBC, senior Conservative officials went one step further and said a vote of no confidence could come as early as today.

Leavers want to leave the customs union so the UK can try to form trade agreements around the world with leading nations such as the US, and Remainers want to remain part of the customs union and single market in full, which would allow the UK to continue to be involved in passing new laws.

What next for Brexit and how could this impact my currency transfer

Theresa May is going to address Parliament today and will face tricky questions from both the opposition and her own Party. It will be interesting to see the DUP's reaction as initial commentary coming from the Party is that they won’t be able to support the PM moving forward.

Throughout the next couple of days she will be waiting to see if a vote of no confidence or resignations from her Cabinet ministers materialise. If she manages to get through the next week unscathed all eyes will turn to the EU to confirm whether the 27 member states approve the 500 page document, as the member states still need to scrutinise the proposal. If the EU sign off on the proposal there will be a vote in Parliament in December. If MPs sign off on the deal, the final withdrawal agreement will be put back to the EU to sign off and the UK will start the transition period in March 2019. However, if Parliament fail to approve Theresa May’s plan, and the commentary we have received over the last 24 hours seems like this is extremely likely, the UK will have 1 of 4 options. Leave with no deal, renegotiate, a general election or another referendum.

Clients buying sterling should be aware that we are one step closer to agreeing a deal with the EU, and that's why current levels for buying euros are at a 5 month high. However, if resignations from the Cabinet are received in the upcoming days, if there is a vote of no confidence or Parliament vote down the deal in the upcoming weeks, you would expect the pound to face major pressure. At present this seems extremely likely.

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