UK: Politics to remain in the forefront - TDS

Sandeep Kanihama FXStreet Contributor

TD Securities analysts point out that in the UK, PM Theresa May addresses MPs today around lunchtime (BST) as she will then take questions from MPs for a couple of hours.

Key Quotes

“Parliament is officially in recess from 5pm BST today until 23 April. Parliament does not need to vote to approve the extension. Cross-party talks between the Conservative and Labour parties will continue next week. We significant risk that they break down, however - possibly as soon as today. Neither party has the incentives to agree a deal.”

“Theresa May is likely to give her deal one last push ahead of the 2 May local elections in England. Nearly 8,500 council seats will be up for grabs. Reports suggest that both mainstream parties are facing significant criticism over Brexit on the campaign trail.”

“We see the 23-26 May EU elections as almost inevitable at this point. Even if the deal is passed by 1 May, three weeks is unlikely to be enough time to pass the required Withdrawal Bill Implementation Act and other legislation required for the UK to leave.”

“The risk of a general election is limited in the near-term. Both parties are polling far below their 2017 results. Neither leader wants to campaign amid the current Brexit stand-off.”

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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