Article 50 Invoked: 29th March 2017
The UK have formally invoked Article 50, via a letter delivered to European Council President Donald Tusk. Shortly after that Prime Minister Theresa May delivered a statement to Parliament. Within the statement she touched on subjects such as the government’s desire to reach an agreement within the two year window, although she did acknowledge that a comprehensive deal would be a challenge, a sentiment echoed by the German Foreign Ministry which remarked that the timetable was “damn narrow”. Regarding trade there were no real firm details of the government’s position other than PM May stating that the government sought the freest possible trade deal, although she did acknowledge that there were consequences with leaving the EU and that the government respects the EU’s position that the four freedom of the single market are indivisible and that there can be no cherry picking. Suggesting that the UK will not achieve full single market access given its stance on immigration. Overall PM May’s speech and the letter delivered to Donald Tusk do not reveal any significant new information around the UK’s key positions on negotiations.
1 May 2017
Theresa May has called for a snap UK General Election. June 8 looks to increase the Tory party’s current standing well above its outgoing majority, despite it having recently taken a knock in the polls. Despite an increase in implied volatility, sterling remains well supported by hopes the election will strengthen PM May’s hand in Brexit talks.