DailyFX European Market Outlook: Brexit And Article 50 Implementation
Britain voted to leave the European Union 9 months ago but next week the process will actually begin in earnest when UK Prime Minister Teresa May triggers Article 50. Will the two parties involved set out ‘red lines’ or will they try and begin proceedings on a less acrimonious basis? With the French Presidential Election on May 7th, it may be unlikely that we see any firm trade proposals before then, although it would show willing on both sides if the rights of UK and EU citizens is addressed at the early possible date.
UK PM May will also have to take notice of the delayed Scottish independence referendum on Tuesday. SNP First Lady Sturgeon is seeking the Scottish Parliament’s backing to ask Westminster for another referendum, although UK PM May has already indicated that it will not be allowed before Article 50 negotiations are over. With Nicola Sturgeon insistent on the vote, the strong rhetoric on this will continue to run.
At the start of next week we should know if US President Donald Trump’s Healthcare plan has passed through the House of Representatives, after Thursday’s delay. Financial markets are keen to see if the new President has the backing of his party on his first major vote in what will a test of his leadership qualities. It may also give the market a clearer insight into Donald Trump’s heralded tax plan, especially as global markets have rallied in anticipation of a substantial US fiscal boost.
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