First appeared on eFXplus on Sep 03 - 08:43 AM
Societe Generale Research discusses the latest Brexit developments, flagging a room for further selling pressure over the coming weeks.
"The UK Parliamentary recess has ended, and the next one doesn't start for a few days, so MPs opposed to a no-deal Brexit will seek, today, to take control of the Parliamentary timetable and call a vote forcing the Government to seek a further 3-month delay in Brexit until the end of January. The Prime Minister promises that he will not ask for a further deal and insists that being committed to leaving without a deal at the end of October is necessary to push the EU into offering an alternative way forwards, instead of the deal negotiated by Mrs May. The inference is that he will call a vote to have a snap General Election if the rebels succeed in their plans to force him to ask for a delay," SocGen notes.
"Meanwhile the UK economy is rudderless and if yesterday's PMI data show anything , it is that a weaker pound does nothing to help the manufacturing sector under these circumstances.
Bottom line - 48 hours of heightened uncertainty that may well lead to a further 6 weeks of heightened uncertainty," SocGen adds.
Société Générale Research/Market Commentary