UK: Further extension in the pipeline – Danske Bank

Danske Bank analysts point out that the EU has granted an extension to 31 October and some EU leaders already appear open to the possibility of a further extension if needed.

Key Quotes

“The Conservative backbenchers want to get rid of Theresa May.”

“Look out for local elections on 2 May and European elections on 23 May. Mood for snap election is low.”

“No signs of imminent breakthrough in cross-party talks.”

“We expect EUR/GBP will remain in the 0.85-0.87 range for now. Markets likely to focus on other things than Brexit now.”