Theresa May to ask for short Brexit delay
So we are just 9-days away from Brexit and it has come down to either an extension or no-deal Brexit. An extension of any sort has been priced into the Pounds current position and if/when confirmed, we should see a slight increase to £-€1.17 & £-$1.33 mid-market levels once again.
But, if EU leaders reject an extension (unlikely) we will see Sterling fall 7/8%. How the EU will vote is unpredictable as an extension of any kind brings problems.
If the UK doesn't leave the EU by May 22nd, it might have to take part in elections to the European Parliament. If that happens, far right figures could end up as members of the European Parliament. A short delay, brings no guarantee that the UK parliament will agree on a Theresa May deal. So one of the outcomes is; a short delay, an extension on the delay and then a no-deal Brexit. Incredible!
The Pound will obviously remain under pressure slightly until something concrete comes out, so it's maybe a good time for £ buyers. There is expected to be no decision until next week on the proposed extension.