Analysts at Nordea Markets suggest that last week, they have found the market optimism surrounding a Brexit deal too stretched and after a week later there is no whatsoever majority in favour of Mays Brexit draft deal.
Key Quotes
“Judged by the risk reversal, EUR/GBP could be headed as high as 0.91-0.92, if the full risk of a new Brexiteer-PM is priced in. We stay long EUR/GBP, as we consider Theresa May doomed.”
“There is no majority in favour of anything in the House of Commons, meaning that it is ultimately very hard to imagine any progress being made without a shakeup of the current composition of mandates. New elections are unavoidable.”
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