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In today’s moving speech, Mrs. May stressed Britain’s determination to regain control of migration from the European Union and rejected the supremacy of the European Court of Justice, even at the risk of losing unfettered access to the single market and its nearly 500 million consumers.
U.S. Bond Rally Continues
Just when Wall St. told you to “get out of bonds” we’ve experienced one of the most significant rallies in recent years. As bond prices rise, yields move lower, 32bps in 24 days is impressive indeed. The weaker Dollar, stronger Pound is helping today.
“Let me be clear,” said Mrs. May, adding that any agreement would be sent to both houses of Parliament for approval. “What I am proposing cannot mean remaining in the single market.”
*MAY SAYS GOVT WILL PUT FINAL BREXIT DEAL TO VOTE IN PARLIAMENT
*U.K.’s May Says She Wants a New Deal With EU Customs Union
“I do not want us to be bound by the common external tariff… I do want us to have a customs agreement with the EU.”
“I want to be clear, what I am proposing cannot mean membership of the single market. European leaders have said many times membership means accepting the four principles” of the EU.
Theresa May’s speech is moving markets as expected. It’s important to note, Parliament will be voting on the terms of the Brexit, life after Brexit.
May’s Goals:
Wants Customs Agreement With EU
May Need to Be Associate Member of Customs Agreement
Open to Options on New Customs Union Arrangement
Prime Minister Theresa May on Tuesday set a course facing a clean break with the European Union after more than four decades of integration with the Continent.
Too Many Shorts?
Positioning in the Pound has been one sided for much of the last 6 months. Considering this, speculators have seemingly done a bit of short covering on the back of the news that the British Parliament will have a final say. Today’s rally is looking a like a sell the rumor buy the news event, as the Pound has become very politically driven.
The U.K. parliament will get a vote on the final Brexit deal before it is implemented, Prime Minister Theresa May said, as she tried to offer business some certainty about its future. Bears have been driving the pound heading into May’s speech, cover (shorts) on the news is in play today.
“The United Kingdom is leaving the European Union, and my job is to get the right deal for Britain as we do,”
May says four key principles guide her Brexit goals. They are:
Certainty and clarity
A stronger Britain
A fairer Britain
A truly global Britain
Join our Larry McDonald on CNBC’s Trading Nation, Wednesday at 2pm.
Don’t miss our next trade idea. Get on the Bear Traps Report Today, click hereWhere are bond yields going with risk of a euro breakup on the rise? Click here (above) for our latest report.
