Danske Bank's analysts point out that the EU has granted an extension to 31 October but some EU leaders already appear open to the possibility of a further extension if needed. In adition, they noted:

• “The Conservative backbenchers want to get rid of Theresa May.”
• “Look out for local elections on 2 May and European elections on 23 May. Mood for a snap election is low.”
• “No signs of an imminent breakthrough in cross-party talks.”
• “We expect EUR/GBP will remain in the 0.85-0.87 range for now. Markets likely to focus on other things than Brexit now.”