Analysts at Danske Bank point out that the EU27 and the UK government are likely moving closer to a compromise on the backstop.

Key Quotes

“Even if this is the case, it is definitely not a given that it would pass the House of Commons if put forward for a vote on Wednesday 26 February. Many Brexiteers will vote down any deal (they do not mind a "no deal" Brexit) and so far May has not been able to persuade enough Labour and pro-EU Conservative MPs to vote in favour.”

“This is also the reason why the EU leaders have hinted it will no longer approve anything until it has been approved in the House of Commons. However, as the pressure is building, it may change. Right now it seems more likely, though, that the House of Commons will force Theresa May to ask for an extension of the Article 50 deadline next week, or it has to go down to the wire in March.”