The Euro has fallen against the dollar after disappointing French and German economic surveys dismayed the markets. In France, private sector business activity contracted for the first time in two and a half years as the gilets Jaunes protests took their toll.
European Union leaders have said the Brexit withdrawal agreement is “not open for renegotiation”, despite appeals from Theresa May. She wanted legal assurances on the Irish backstop to help her deal get through Parliament after she delayed a Commons vote in anticipation of defeat.
The pound has risen amid speculation that Prime Minister Theresa May will win the vote of confidence in her leadership on Wednesday evening. The currency is trading 1.4% higher against the dollar at $1.2660 and 0.9% higher against the euro at €1.1132.
Britain must revoke its notice to quit the European Union with immediate effect to allow for “serious and profound reflection” by both parliament and the people, former Prime Minister John Major said on Tuesday.
The European Court of Justice has ruled the UK can cancel Brexit without the permission of the other 27 EU members. The ECJ judges ruled this could be done without altering the terms of Britain's membership.
Theresa May says she has called off Tuesday's crucial vote on her Brexit deal because it “would be rejected by a significant margin”. She said MPs backed much of the deal she has struck with the EU but there was concern over the Northern Irish backstop.
The European Court of Justice (ECJ) is to rule on whether or not the UK can cancel Brexit without the permission of the other 27 EU members. A group of anti-Brexit politicians and campaigners has argued that the UK should be able to unilaterally halt the Brexit process if it wants to do so.
Commons vote on Tuesday will not be delayed, the Brexit Secretary has said, amid growing calls for the PM to go back to Brussels to renegotiate. Stephen Barclay also said Theresa May could stay in post if, as expected, MPs reject her Brexit plan.
The UK should pursue the so-called Norway plus option - if Theresa May's Brexit plan is rejected by MPs on Tuesday, according to Work and Pensions Secretary Amber Rudd. In an interview with The Times, Ms Rudd said she still supported the PM's plan - but added a variation of Norway's set-up was the best alternative.
Parliament will be “gridlocked” no matter what the Brexit deal, former Cabinet minister Justine Greening warned as she urged the Government to “ask the people” to break the impasse. The Tory former education secretary told MPs a referendum could be held in the next 22 weeks as she derided Theresa May’s current plan.