UK: More time needed to reach an agreement about Brexit? – Danske Bank


Danske Bank note that the Finnish PM Antti Rinne (holder of the rotating EU presidency) said 'more time' was needed to reach an agreement about Brexit.

Key Quotes

“While it is not our base case, it is still possible for the two sides to reach an agreement before the 31 October deadline. Should the negotiations be close to a deal, the EU can call an extraordinary summit later, which - as reported by the BBC yesterday - it is considering (this would require a short extension allowing time for further negotiations).”

“In addition, the idea of calling a confirmatory referendum, either on Theresa May's old Brexit deal or PM Johnson's possible Brexit deal, is gathering attention. Yesterday in the House of Commons, Labour leader Jeremy Corbyn hinted that he too may support a confirmatory referendum saying that people should decide 'in a final say', echoing comments from his lieutenants in the Labour Party.”

“'Remain' would most likely be one of the options on the ballot and given that 'remain' is ahead in most polls, markets will likely think this is positive (the GBP also strengthened a bit on the back of Corbyn's comment). We will monitor this closely in coming days. Our base case remains that the UK is heading for an extension (as pencilled out in the Brexit Delay Bill, which requires the government to ask for an extension on Saturday if no deal is reached) followed by a snap election.”

Share: Feed news

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended content

Editors’ Picks

EUR/USD trades with negative bias, holds above 1.0700 as traders await US PCE Price Index

EUR/USD trades with negative bias, holds above 1.0700 as traders await US PCE Price Index

EUR/USD edges lower during the Asian session on Friday and moves away from a two-week high, around the 1.0740 area touched the previous day. Spot prices trade around the 1.0725-1.0720 region and remain at the mercy of the US Dollar price dynamics ahead of the crucial US data.

EUR/USD News

USD/JPY jumps above 156.00 on BoJ's steady policy

USD/JPY jumps above 156.00 on BoJ's steady policy

USD/JPY has come under intense buying pressure, surging past 156.00 after the Bank of Japan kept the key rate unchanged but tweaked its policy statement. The BoJ maintained its fiscal year 2024 and 2025 core inflation forecasts, disappointing the Japanese Yen buyers. 

USD/JPY News

Gold price flatlines as traders look to US PCE Price Index for some meaningful impetus

Gold price flatlines as traders look to US PCE Price Index for some meaningful impetus

Gold price lacks any firm intraday direction and is influenced by a combination of diverging forces. The weaker US GDP print and a rise in US inflation benefit the metal amid subdued USD demand. Hawkish Fed expectations cap the upside as traders await the release of the US PCE Price Index.

Gold News

Sei Price Prediction: SEI is in the zone of interest after a 10% leap

Sei Price Prediction: SEI is in the zone of interest after a 10% leap

Sei price has been in recovery mode for almost ten days now, following a fall of almost 65% beginning in mid-March. While the SEI bulls continue to show strength, the uptrend could prove premature as massive bearish sentiment hovers above the altcoin’s price.

Read more

US core PCE inflation set to signal firm price pressures as markets delay Federal Reserve rate cut bets

US core PCE inflation set to signal firm price pressures as markets delay Federal Reserve rate cut bets

The core PCE Price Index, which excludes volatile food and energy prices, is seen as the more influential measure of inflation in terms of Fed positioning. The index is forecast to rise 0.3% on a monthly basis in March, matching February’s increase. 

Read more

Forex MAJORS

Cryptocurrencies

Signatures