MUFG Research discusses the latest Brexit vote developments.
"The focus will now switch to today’s vote in parliament which will give MPs the opportunity to force the government to request an extension to Article 50. It is an opportunity we expect MPs to take. Amendments to the motion will also provide additional uncertainty. A group of cross-party MPs are planning to force indicative votes in parliament on alternative Brexit options as means to help break the current deadlock," MUFG notes.
"Overall, this week’s Brexit developments have supported our view that the direction of travel is towards a delayed and potentially softer Brexit which has been supporting a stronger pound.
However, political developments are also becoming increasingly uncertain. It comes with a clear health warning that the path ahead is not without pitfalls," MUFG argues.