May hits brick wall in Brussels

GBP Yesterday saw a rare event in the U.K. – a muted day of Brexit headlines, despite Theresa May meeting with the European Council. News broke this morning, however, that May made little progress. Indeed, after leaving the room following an hour-long...

Draghi is an optimistic dove

A new species has been discovered today in the Governing Council; the optimistic dove. European Central Bank President, Mario Draghi, once again displayed the variety of tones in his plume as he delivered a dovish message, but continuously guided the attention of the...

Another 12 months of May?

GBP After initially taking a beating on the announcement that Prime Minister Theresa May would face a vote of confidence from within her own party, sterling began to rally throughout the day, as markets reacted optimistically to May’s combative promise to fight on....

Tonight’s vote a barometer for parliamentary appetite for May’s deal

If May’s boisterous reception in the commons and tweets from Tory MPs are to be believed, May is more likely to survive tonight’s vote than not. This appears to be the market’s base case, with sterling rallying slightly this morning towards the 1.26 handle against USD...

May looks defeat in the eye and says “not today”

GBP Sterling sold off yesterday on the headlines from Sky News that Theresa May will face a vote of no confidence from the Conservative Party, but has actually rallied slightly this morning on confirmation the vote will occur tonight. May stood defiantly when she...

UK investors continue to hedge in light of greater uncertainty

Following on from yesterday’s humiliating dodge, May now goes to Brussel’s to discuss going forward with Jean-Claude Juncker. Little has changed to our base case, despite the formal rejection of her draft Withdrawal Treaty not taking place. The $1.25 level has been...