Citibank: UK economy guided by the Brexit developments

Sandeep Kanihama FXStreet Contributor

Citibank analysts point out that in the UK, passing of the "Letwin Amendment" in the parliament overnight means that tonight, the UK House of Commons will hold a series of "Indicative Votes" on a range of Brexit options to force MPs to choose to hopefully demonstrate support for one or two options.

Key Quotes

“Indicative Votes” are not binding & in theory PM May can ignore the outcome though she is unlikely to do so.”

“List of probable Brexit proposals included – (1) PM May’s deal; (2) No deal Brexit; (3) 2nd ref; (4) Revoking Art50; (5) Canada-style free trade agreement (6) Customs Union 2.0 (Norway-style pivot); and (7) Joining the Single Market.”

“BOTTOM LINE - Beyond the indicative votes, Conservative Brexit hardliners may now realize that PM May's deal is their only chance of achieving anything resembling the Brexit they want... the ERG group (a group of hard Brexiteers) have asked PM May to give a cast iron timeline on when she is likely to step down as PM as a pre-requisite to potentially getting their support to pass her deal – PM May has reportedly done so, according to press reports.”

Author

Sandeep Kanihama

FXStreet Contributor

Sandeep Kanihama is an FX Editor and Analyst with FXstreet having principally focus area on Asia and European markets with commodity, currency and equities coverage. He is stationed in the Indian capital city of Delhi.

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