Cable Slides As British PM May Confirms No Extension Of Brexit Process

Following this morning’s chaotic spike higher in cable, the currency pair du jour is falling back quickly following comments from British PM Theresa May confirming the government will not seek an extension to the Article 50 process and plans to exit the EU by end-March 2019.

“By the end of March 2019 is the latest point” that the premier wants the U.K. to leave the European Union, Prime Minister Theresa May’s spokeswoman, Helen Bower, tells reporters in London on Monday.

And cable slipped lower…

Furthermore, as Bloomberg reports,

Prime Minister Theresa May acknowledged calls from Britain’s main corporate lobby group to avoid a “cliff edge” in which the U.K. leaves the European Union before sealing a fresh trade deal, signaling she may be open to seeking a transitional agreement to bridge any gap.

“We want to get the arrangement that is going to work best for the U.K. and that will work best for business in the U.K.,” May said at the Confederation of British Industry’s annual conference in London. “I understand that people don’t want a cliff edge.”

The CBI urged the government to clarify what happens on the day after Brexitamid concern companies could be hit by uncertainty, new regulations and tariffs if a new relationship hasn’t been arranged with the EU by then. 

May has said she wants to invoke Article 50 of the EU’s Lisbon Treaty by the end of March 2017, setting in motion two years of formal talks on the U.K.’s departure from the bloc. In that time, the government will have to draw up new rules for a range of economic activities currently governed by EU regulations as well as strike new trade deals. If no agreements are reached, trade between the U.K. and the EU would be governed by World Trade Organization rules.

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