Analysts at TD Securities point out that the Fitch rating agency will be reviewing the UK’s AA (neg watch) rating, likely quite late in the day and will be a key event today.

“While the possibility of a no-deal scenario has reduced, the path ahead still remains unclear. Thus, we do hold a cautious stance ahead of the review. Spanish elections are on Sunday. We expect PSOE to win the most seats, but with EU and local elections coming in late-May, talks are unlikely to yield a coalition agreement before June. Market reaction is likely to be relatively limited in part due to the lingering coalition uncertainty but also because both main parties are relatively traditional.”