While the announcement of the EU-UK withdrawal agreement is good news for the pound, the key hurdle of the deal being approved in the UK parliament remains. With the Democratic Unionist Party announcing that its position towards the proposed deal remains unchanged (that is no support for the deal) there is a high risk that the government won’t have the majority for the deal in the UK Parliament (as was the case for the previous government of PM May). With GBP already trading with a premium against EUR (around 2% expensive based on our short term financial fair value model as per Figure 1) and the large rally in ... (full story)