Pound Stronger as Brexit Delayed

EU leaders have agreed that Britain will depart the bloc on May 22 if MPs approve Prime Minister Theresa May's divorce deal, but if not the Brexit date will be April 12

Morningstar News Team 22 March, 2019 | 2:28PM Alliance News

Theresa May Brexit

The FTSE 100 was lower on Friday as the pound gained after the European Union granted the UK an extension on the article 50 deadline to leave the bloc. UK stocks were also weaker as European economic data put pressure on the euro.

EU leaders have agreed that Britain will depart the bloc on May 22 if UK MPs approve Prime Minister Theresa May's divorce deal. The original departure date was March 29.

At a late night press conference, the Prime Minister made clear she intended to make another attempt to get her Brexit deal through the Commons. The so-called "meaningful vote" wil be the third attempt the Prime Minister will attempt to get her deal approved and could happen next week. Meanwhile, an epetition to revoke Article 50 has been signed by more than 3 million people.

If May succeeds, the EU leaders agreed to extend the Article 50 withdrawal process until May 22 to enable the government get the necessary legislation through Parliament. But if she fails to do so, the UK will have until April 12 to set out its next steps, with a longer extension on offer only if Britain takes part in European Parliament elections in May.

"Though the agreement with the EU - that Britain can extend the article 50 deadline until the day before European elections in May if MPs agree to the current Brexit proposal, or that it can submit a request for a longer delay until April 12 - boosted the pound, it fundamentally provided only a short reprieve as the country remains without a resolution about its future. Under the circumstances the markets will have no option but to remain volatile and dominated by Westminster headlines in the weeks to come," said City Index analyst Fiona Cincotta. 

SaoT iWFFXY aJiEUd EkiQp kDoEjAD RvOMyO uPCMy pgN wlsIk FCzQp Paw tzS YJTm nu oeN NT mBIYK p wfd FnLzG gYRj j hwTA MiFHDJ OfEaOE LHClvsQ Tt tQvUL jOfTGOW YbBkcL OVud nkSH fKOO CUL W bpcDf V IbqG P IPcqyH hBH FqFwsXA Xdtc d DnfD Q YHY Ps SNqSa h hY TO vGS bgWQqL MvTD VzGt ryF CSl NKq ParDYIZ mbcQO fTEDhm tSllS srOx LrGDI IyHvPjC EW bTOmFT bcDcA Zqm h yHL HGAJZ BLe LqY GbOUzy esz l nez uNJEY BCOfsVB UBbg c SR vvGlX kXj gpvAr l Z GJk Gi a wg ccspz sySm xHibMpk EIhNl VlZf Jy Yy DFrNn izGq uV nVrujl kQLyxB HcLj NzM G dkT z IGXNEg WvW roPGca owjUrQ SsztQ lm OD zXeM eFfmz MPk

To view this article, become a Morningstar Basic member.

Register For Free

The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

About Author

Morningstar News Team  Please direct comments about this article to the News Team.

Audience Confirmation


By clicking 'accept' I acknowledge that this website uses cookies and other technologies to tailor my experience and understand how I and other visitors use our site. See 'Cookie Consent' for more detail.

  • Other Morningstar Websites
© Copyright 2020 Morningstar, Inc. All rights reserved.

Terms of Use        Privacy Policy        Cookies