Markets biggest focus on the UK government’s triggering of Article 50 today – Danske Bank
In view of the analysts at Danske Bank, the biggest focus for the markets today will be the UK government’s triggering of Article 50 and the response by the EU.
Key Quotes
“The UK is expected to send a Brexit letter to the EU following a cabinet meeting at 9:00 CET, followed by a response from Donald Tusk on the EU side once he receives the letter. This will mark the start of a negotiation period of up to two years, which may get off to a difficult start as there appear to be differences of views between the UK and EU about the focus of the discussions from the outset. One of the likely casualties of the ‘divorce’ talks will in our view be the GBP, which is indeed trading weak this morning, but the wider UK economy has also recently showed signs of ‘Brexit stress’, with consumers turning more pessimistic.”
“In Asia, the markets do not appear to be have been hit by Brexit fears yet as they are generally trading on a positive note this morning. One of the driving forces for the positive risk sentiment is probably the very strong US consumer sentiment number, which was released yesterday.”
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.
