On Monday, sterling had a volatile day as traders received mixed news about the ongoing Brexit news. As a result, traders pushed the GBP/USD pair to a weekly low of 1.2695. After that, traders started receiving optimistic news again. This led the pair to climb to continue moving up. Yesterday, the positive news was confirmed when Theresa May announced that the EU and the UK had reached a deal. She convened a cabinet meeting to share the news and lobby the members to support the modified Chequer’s proposal.

Today will likely be Theresa May’s most important day as prime minister. This is because, the 400-page deal needs to be accepted by her cabinet. After that, it will need to be accepted by parliament. This will be an uphill task for the prime minister, who faces a divided cabinet. A good number of pro-Brexit cabinet officials have signaled that they will not accept the new deal.

In parliament, May will continue to face a tough challenge. Already, the Labor party led by Jeremy Corbyn has indicated that it will reject any deal that comes from May’s side. Some of the members have also talked about supporting a new Brexit deal. While this is expected, the challenge is for Theresa May to convince the pro-Brexit parliamentarians to support her proposal. Many have already expressed opposition to it. They argue that May compromised too much.

As you recall, the UK went to a referendum in 2016. The question was whether the voters supported to remain in the EU or leave the EU. The leave side won after campaigning against the European Union. They argued that by separating from the EU, the country would be unchained from the bureaucracy of the EU. The European Union is known for its many regulations, wasteful spending, and bureaucracy. By leaving the EU, they argued that the country would be free to negotiate new trade deals. They also argued that the EU was led by many unelected officials in Brussels. The deal proposed by Theresa May – who supported staying in the EU – will not adequately separate the UK from the EU.