Pound Euro Sideways Because UK Is Not Yet Brexiting
Today markets another important day of voting in the UK House of Commons where Parliamentarians will again cast opinions on the so-called 'indicative votes' all of which failed the first time around. Regardless, the markets certainly do not believe the UK is headed towards a no deal Brexit, but as of right now that is where the UK is heading as a deal is required to be ratified by the House of Commons and agreed by the EU to avoid an accidental crash out of the EU by April 12th. A general election is seeming to gather steam, but both the two main parties are extremely unpopular so it is quite uncertain what the outcome of this would be.
It seems we are on the edge of a constitutional crisis if neither Parliament nor the prime minister can come to any agreement. In that event, we could see a long extension of Article 50 which could be as long as another year. At least, again, this is how financial markets are pricing in the uncertainty. But if that's the case, then the UK will have to organize EU Parliament elections which PM May is fundamentally opposed to. Unfortunately, this forces an almost paralysis by analysis since the uncertainties are so high. The closer we get to April 12th, the more clarity there will be on the future of this issue. For more, check out anthonylaurence.wordpress.com
It seems we are on the edge of a constitutional crisis if neither Parliament nor the prime minister can come to any agreement. In that event, we could see a long extension of Article 50 which could be as long as another year. At least, again, this is how financial markets are pricing in the uncertainty. But if that's the case, then the UK will have to organize EU Parliament elections which PM May is fundamentally opposed to. Unfortunately, this forces an almost paralysis by analysis since the uncertainties are so high. The closer we get to April 12th, the more clarity there will be on the future of this issue. For more, check out anthonylaurence.wordpress.com