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May 16 - 01:24 PM
GBP: PM May Signals A Final Vote For The Week Of June-3; What To Expect - Citi
First appeared on eFXplus on May 16 - 11:15 AM

Citi Research discusses GBP outlook in light of the latest Brexit developments.'

"Latest Brexit developments – PM Theresa May overnight signals a fourth (and final) Meaningful Vote on her Withdrawal Bill for the week of June 3.

Sterling takes a hit as this latest development, absent a ‘definitive vote’ majority for a customs arrangement and confirmatory referendum, sees limited scope for a Brexit breakthrough and which either (1) raises the risk of a Tory leadership change over summer (with PM May possibly replaced by a hard-Brexiteer) who will likely push a “No Deal” WTO exit agenda,  OR  (2) the UK risks heading into a general election that raises the chances of an opposition Jeremy Corbyn – led Labor Party win," Citi notes. 

"Bottom Line - Neither of the 2 options appears to be palatable for sterling but there is also a chance that PM May could just pull off a deal in the week of June 3.

For now, we still retain a bullish sterling call given the limited impact of global trade tensions on the UK," Citi adds. 

Source:
Citi Research/Market Commentary

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