UK: Timetable for electing a new PM moved forward by a couple of months - SocGen

Kit Juckes, Research Analyst at Societe Generale, suggests that the UK politics took a twist as the timetable for electing a new Prime Minister was moved forward by a couple of months.

Key Quotes

“A source of uncertainty was re moved but it’s like peeling an onion- beneath each layer there’s another. Theresa May has stated repeatedly that ‘Brexit means Brexit’ and there will be non second referendum.

The rest of the EU doesn’t want to make any concessions on the terms under which the UK leaves, doesn’t want negotiations to start until Article 50 is invoked and is in a hurry for that to happen as soon as possible.

Mrs May is in no hurry, would like concessions and would like informal discussions. Let the diplomatic horse-trading begin! Overnight, BRC data were mediocre, but that won’t prevent the market squeezing out more sterling shorts. We’ll get short again before we see GBP/USD 1.35.”