British PM allows MPs to scrutinise Brexit plan

Wednesday's debate is due to end in a vote, but it will not be binding on the government.

A number of lawmakers who opposed a British exit from the European Union in June's referendum would now back a start of formal divorce proceedings from the bloc - provided parliament gets to decide at all, a Reuters poll showed.

The government has consistently maintained that it is unhelpful to give a "running commentary" on its negotiating strategy, in order not to give negotiating partners in Brussels and across the continent any advantage. May told parliament, a statement which helped sterling gain around a quarter of a cent against the dollar.

"After weeks of tough rhetoric pushing sterling into a trading environment closer to an emerging-market currency, the government may aim to stabilise markets with its rhetoric and suggestions now possibly shifting in tone", said Morgan Stanley head of currency strategy Hans Redeker. The debate was granted after a last-minute government concession. "That is now read as positive for sterling".

The euro hit an 11-week low of $1.1009 in morning US trading, and was last down 0.27 percent at $1.1023.

"There is no more important issue facing Britain than the terms of our departure from the EU".

"There will be plenty of opportunity to debate in the next two and a half years". The flash crash was blamed on possible human error and algorithms at a time when liquidity was scarce.

Sterling bounced back against most major currencies, up a cent to 1.22 United States dollars and a cent higher at 1.11 euros, having been hammered in recent sessions on Brexit fears and suffering a dramatic hit in last Friday's flash crash.

May has remained silent on the form of Brexit she wants to pursue but there are already tensions between ministers about whether to go for a "hard" deal securing a clean break with the EU.

"The idea that parliament somehow wasn't going to be able to discuss, debate, question. was frankly completely wrong", Ms May said when asked by an opposition Labour lawmaker whether parliament would get a vote on the government's Brexit plan.

She tabled an amendment that effectively accepts the motion.

But Conservative backbencher Bernard Jenkin, the chairman of the influential Public Administration and Constitutional Affairs Committee, dismissed the demands for a parliamentary vote on the Government's Brexit negotiating position. The British pound was buoyed in response to the news during Asia hours.

She pointed out that Brexit Secretary David Davis had made two statements on Brexit, that there would be a parliamentary committee on it and that there would be a Great Repeal Bill to end European Union authority that would need parliamentary approval, albeit after Article 50 has been triggered.

Options traders are more pessimistic on the pound than on any of its developed-market peers. They cut forecasts for the next 12 months from €1.16 to €1.05.



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