Danske Bank analysts point out that EUR/GBP changed little as PM May won the no-confidence vote in the UK parliament overnight.
“At this point, it remains uncertain how the Brexit process will continue from here. The Prime Minister will hold talks with all party leaders and present the government’s plan for Brexit on Monday.”
“All options for Brexit are still on the table, including a second referendum and a ‘no deal’ Brexit and we expect EUR/GBP to stay in the 0.88-0.9060 range until further clarification.”
“We maintain the view that an extension of Article 50 would be positive for GBP as it reduces the risk of a ‘no deal’ Brexit, while pressure on GBP might increase due to rising uncertainty as 29 March moves closer.”
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