FOMC has been and gone. The in a nutshell version is Jerome is all lovey dovey now.
Just glancing across some of the banks on Brexit and where to from here after this week's voting.
Nordea
- Tuesday's voting has "pushed the U.K. closer to a managed no-deal exit … Theresa May will now travel to Brussels and ask for a unicorn"
- trade recommendation is to sell GBP against the EUR (long EUR/GBP, K?)
- target at least 89.5
- "We find it hard to justify the current Brexit optimism
- Would put a larger subjective probability on the no-deal risk than markets do"
Credit Agricole
- "The game of chicken between the U.K. and the EU entered a critical phase" after the Tuesday voting
- "... what remains very unclear is if a deal is at all possible given the still significant differences between the U.K. and the EU."
- see GBP giving back its recent gains versus euro and USD
BNP Paribas
- "The … the can has merely been kicked down the road"
- "We see an extension as almost inevitable now"
(ps. all these are pre-FOMC and the big moves seen since)
