Daily Brexit update Extension request and rejection duress

Daily Brexit update: Extension request and rejection duress

The Prime Minister has finally requested an extension of the ‘negotiating period’ before Britain leaves the European Union of three months. This request has been swiftly rejected. In theory, that means it’s back to the drawing board for Downing Street, in terms of not just an urgently needed Brexit delay, but also for chances of Theresa May’s Brexit deal getting parliamentary approval before time runs out in 9 days.

It’s just another day in the moveable feast that is Brexit. Naturally, the day’s headlines so far are garnished with several twists, so even deepening uncertainty has a false wall. Chiefly, a European Union Commission document has emerged, according to Reuters, stipulating that any delay—which officials continue to insist will not be discussed at this week’s summit—must be either several weeks shorter than the period to the end of June or should push Britain’s exit to at least till the end of this year, forcing the UK to participate in EU elections. The European Council President has also announced another condition: that the UK must succeed in winning parliamentary approval for the Brexit deal.

In any case, the government would have till 11^th April to decide whether Britain will field candidates for 23^rd May’s European elections. The market is interpreting the latest twists as dithering, though dithering with somewhat more negative overtones than seen since MPs rejected the government’s Brexit formula for a second time last week. As such, sterling has trimmed even more of the gains made to 2019 highs just above $1.33. The rate against the dollar is testing the underside of its $1.3181 one-week range bottom. With the market on tenterhooks over what the EU or May could do next, forthcoming developments will govern whether that key support gives way, likely stoking a ramp in short-term volatility.

From time to time, StoneX Financial Pty Ltd (“we”, “our”) website may contain links to other sites and/or resources provided by third parties. These links and/or resources are provided for your information only and we have no control over the contents of those materials, and in no way endorse their content. Any analysis, opinion, commentary or research-based material on our website is for information and educational purposes only and is not, in any circumstances, intended to be an offer, recommendation or solicitation to buy or sell. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. No representation or warranty is made, express or implied, that the materials on our website are complete or accurate. We are not under any obligation to update any such material.

As such, we (and/or our associated companies) will not be responsible or liable for any loss or damage incurred by you or any third party arising out of, or in connection with, any use of the information on our website (other than with regards to any duty or liability that we are unable to limit or exclude by law or under the applicable regulatory system) and any such liability is hereby expressly disclaimed.

City Index is a trading name of StoneX Financial Pty Ltd.

The material provided herein is general in nature and does not take into account your objectives, financial situation or needs.

While every care has been taken in preparing this material, we do not provide any representation or warranty (express or implied) with respect to its completeness or accuracy. This is not an invitation or an offer to invest nor is it a recommendation to buy or sell investments.

StoneX recommends you to seek independent financial and legal advice before making any financial investment decision. Trading CFDs and FX on margin carries a higher level of risk, and may not be suitable for all investors. The possibility exists that you could lose more than your initial investment further CFD investors do not own or have any rights to the underlying assets.

It is important you consider our Financial Services Guide and Product Disclosure Statement (PDS) available at www.cityindex.com/en-au/terms-and-policies/, before deciding to acquire or hold our products. As a part of our market risk management, we may take the opposite side of your trade. Our Target Market Determination (TMD) is also available at www.cityindex.com/en-au/terms-and-policies/.

StoneX Financial Pty Ltd, Suite 28.01, 264 George Street, Sydney, NSW 2000 (ACN 141 774 727, AFSL 345646) is the CFD issuer and our products are traded off exchange.