UK: May’s gamble backfired - Rabobank

Theresa May wanted to exploit her enormous lead in the opinion polls to strengthen her mandate for Brexit, but this gamble has now backfired explains the analysis team at Rabobank.

Key Quotes

“UK ends up with a hung parliament.”

“Although Theresa May said that she won’t resign as PM, her position within her own party has weakened.”

“The most plausible scenario now is an arrangement between the Democratic Unionist Party (DUP) and the Conservative party.”

“DUP is in favour of the Northern Ireland leaving the EU, but has emphasised that it also wants the border with the Republic of Ireland to remain as frictionless as possible. This could lead to a more moderate stance on Brexit, which is positive for both the UK economy and sterling.”

“Nevertheless, the new government won’t have a strong mandate from the get-go and this means that sterling is in for a rocky ride.”