UK: May signals greater parliamentary involvement in Brexit - BNPP

Research Team at BNP Paribas, notes that the UK Prime Minister Theresa May has accepted that Parliament should be allowed to vote on her plan for taking Britain out of the European Union, but stated that there shouldn’t be an attempt to block Brexit or undermine the negotiating position of the government.

Key Quotes

“GBP has bounced 1.3% in response to the news during Asia hours, following the late New York afternoon slide in Cable through 1.22 and EURGBP above 0.91. Greater parliamentary involvement in the Brexit process will likely be seen as having the potential to reign in some of the governments ‘hard Brexit’ views.

We see scope for the initial bounce in GBP to extend further, given extreme short positioning and very cheap GBP valuations. Our BNP Paribas STEER™ model remains long GBPUSD and short EURGBP.”