Deal or No Deal, EU to decide
26 September, 2018
With little data from the UK this week, much of the focus remains in the ongoing uncertainty surrounding Brexit, particularly following Theresa Mays statement last week. She firmly put the ball back in the EU’s court suggesting it was largely unacceptable for Michel Barnier to reject the chequers agreement without saying why or suggesting any workarounds. However therein perhaps lies the problem. The biggest stumbling block comes with the Irish border and with the UK government finding it hard enough to reach an agreement and the issue seemingly unsolvable, have we reached an impasse?
With the clock ticking some are suggesting we might be looking at a potential general election, but if that was the case the Irish border issue would remain, and so would a different Captain at the helm would not necessarily be able to change the current course of negotiation.
Mays tone in her statement last week was a bold one, but with no response being readily offered it seems that we are in a slight standoff situation with both sides hoping the other will back down. And all the while as the clock ticks down the prospect of a no-deal Brexit is increasing.
With the USD strong as we await the FED announcement tonight of a highly likely 0.25% interest rate hike. This has allowed the Pound to maintain its ground somewhat against the single currency, but the concern is how long will this last, and are we waiting for the Pound to crumble if this acrimony continues and no deal is reached. Downside risk remains high in current conditions, with many of the larger banks warning of a 4-5% drop in rates from where we are at present if no agreement is reached, which could see 5k added to a purchase of 100k.
Are you so certain the current issues can be resolved, and can you afford to take the risk – EU decide. Speak to your currency Index broker today for some friendly and professional guidance on how you can help to protect your budget in such uncertain and volatile times.
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