Analysts at UOB explained that the fate of British PM Theresa May is still unclear.
“She has spoken to Northern Ireland’s Democratic Unionist Party (DUP) with whom she is trying to craft an agreement, according to a statement from the prime minister’s office.”
“Meanwhile, Nicky Morgan, a senior Conservative legislator, said she would oppose a formal coalition pact with the ultraconservative DUP for fear it would force the party to water down the Conservatives’ “equalities policies”.
In an interview with NBC News’ British partner ITV News, Morgan refused to say if the PM would have to go but said May could not lead the Conservatives into another general election.
Although it is possible to put a positive spin on the UK political situation, with a Conservative-DUP deal probably meaning a softer Brexit and less austerity, there is still a lot of uncertainty.
UK political developments will continue to be monitored closely. The UK economic docket features both CPI and retail sales data for this week.”