Buckle your seat belts, this could get bumpy
In February this year Theresa May was playing chicken with the EU.
Here is the piece I wrote at the time.
In February this year Theresa May was playing chicken with the EU. Here is the piece I wrote at the time. Theresa May blinked first. To be fair to May the odds were always stacked against her. She had to ride solo into Europe, take on 27 member states in a high stakes political face off and not flinch first. All this for her country she wanted to serve. However, in her hearts of hearts she was not a Brexiteer. At last she can take a break from it all. She had voted to remain and would have preferred for the country to do so. Is it any wonder that she flinched first? Not really. Boris Johnson is a different figure. He is not averse to creating the odd car crash to get what he wants, and he is now behind the Brexit wheel.
The GBP is convinced Boris won’t blink first
The strong sell off in the GBP is the market saying that they believe Boris will crash the UK out of the EU…if he can. So, now for the first time in Brexit negotiations, the EU are faced with a choice, ‘Do we watch Boris crash the UK out of the EU, or do we try and re-negotiate’. Of course they will re-negotiate something, if not the whole agreement, but will it be enough? Cable has fallen heavily since the start of the week and the Fed may accelarate falls further if the Fed acknowledge the recent flow of good data and switch to a more data dependent footing going forward strengthening the USD. Needless to say, the GBP remains a sell on rallies. If indeed we get many.
- NEWS: Comments from Boston Fed President Rosengren coming up August 19, 2019 at 06:16PM
- NEWS: Italy’s PD has had ‘good’ informal talks with 5-Star on a new government – report August 19, 2019 at 06:07PM
- NEWS: Canadian dollar slumps despite the positive backdrop August 19, 2019 at 05:44PM
- Gold & Volatility Drop, Stocks Rise as Trade War Jitters Ebb
- US Dollar Rises Ahead of Jackson Hole, US-China Trade Talks
Top Posts & Pages
- Gold Price Forecast: RSI Sell Signal Takes Shape
- NEWS: China interest rate liberalisation announced- one step closer to free-floating yuan August 19, 2019 at 01:57AM
- NEWS: More from Trump - China wants to make a deal, we'll see what happens August 18, 2019 at 09:39PM
- Bitcoin (BTC) Price Could Accelerate If It Breaks $10,600
- NEWS: More on China lending reforms - new bank loans to be cheaper from this week August 19, 2019 at 04:14AM
- Yuan wobbles on Trump trade comments, details of China rate reforms awaited
- US Dollar May Rise vs Nordic FX From Trade Wars, FOMC Minutes
- NEWS: Weekend Italy: 5-Star Movement says Salvini no longer a credible partner August 18, 2019 at 11:08PM
- NEWS: Event risk playbook for the week beginning August 19 August 18, 2019 at 03:23PM
- NEWS: Japan - Reuters Tankan report - manufacturing index hits lowest since 2013 August 19, 2019 at 12:03AM