UK: Tough electoral rhetoric on Brexit - Rabobank

Rabobank analysts point out that in the UK, the Conservative party has elected Boris Johnson to be the new leader of the party and Prime Minister (PM) of the country and his first speech and cabinet appointments reflect his tough electoral rhetoric on Brexit.

Key Quotes

“Time is a major constraint and not on the new PM’s side, who has a maximum of 6 weeks to deliver Brexit.”

“If the new UK PM opts for a hard Brexit once EU negotiations fail, he will face firm opposition from the British Parliament.”

“Such a conflict is likely to lead to an early general election, an outcome the new PM might be able to avoid by opting for a second referendum.”

“Either way, a third extension of article 50 by the EU will be necessary and we regard that as the most likely option on 31 October.”

“The odds of a hard Brexit on 31 October remain uncomfortably high.”

“In 2020 we still see the same three possible Brexit outcomes, but the odds of the three are closely tied, with an orderly Brexit being slightly more likely than a Bremain or a hard Brexit.”

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.

Feed news

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD challenges weekly lows after mixed Durable Goods Orders

US Durable Goods Orders were up a measly 0.4% in August, missing expectations of 1.0%, although Nondefense Capital Goods Orders ex Aircraft jumped 1.8%. Equities bounce from lows, but the dollar maintains its strength.


GBP/USD reverses below 1.2750 amid US dollar comeback

GBP/USD extends the retreat below 1.2750, as the US dollar makes a comeback amid a cautious market mood. The cable briefly regained 1.28 after an EU official reportedly said that the tide may be turning despite no big breakthroughs. 


Gold on the defensive, below $1870 level amid stronger USD

Gold struggled to capitalize on the previous day’s modest bounce from two-month lows. The prevalent USD buying interest capped the upside for the dollar-denominated commodity. A turnaround in the equity markets, sliding US bond yields might help limit deeper losses.

Gold News

Binance blacklisted in Russia

The Russian Roskomnadzor (the Federal Service for Supervision of Communications, Information, Technology, and Mass Media) added the cryptocurrency exchange Binance to the blacklist. 

Read more

WTI: Sellers continue to lurk near $40.80

WTI (futures on NYMEX) turns south towards the $40 mark in the European session, having faced rejection above $40.50 on several occasions.

Oil News