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Citibank analysts suggest that the UK’s choice is still between a short or longer extension to Article 50 and while any extension would require EU agreement (and likely granted), nothing significant appears to have changed yesterday.

Key Quotes

“It’s either: (1) Theresa May’s deal is passed in a MV3 next week and a short extension follows to complete legislation formalities or (2) a longer extension is granted to UK that brings into play the prospects of fresh elections and a possible 2nd referendum.”

“Sterling is likely to find support in either scenario but with a sharper and more sustained rally more likely under scenario (1) whereas (2) may see shallower gains followed by a correction as election/ 2nd referendum uncertainties loom.”