Does Boris Johnson have the edge?
18 December 2019

It's not even a week since the ballot boxes were emptied and prime minister Boris Johnson is getting stuck into his winning 'Getting Brexit Done' mantra. And Sterling is getting a tad shaky. After the spike buoyed by the election result, by Wednesday 17/12 the Pound has well and truly lost momentum as sources were carrying the idea that the PM was planning to use a no-deal cliff-edge as part of his negotiating tactic with the EU.

With around six weeks to go until the UK leaves the EU, Johnson’s vision is literally 2020 (the end of December of next year, to be precise) as the time when the next phase of the negotiations will end, a date that will be on the UK statute book. Johnson's plan kicks off on Friday 20/12 with an amendment to the Withdrawal Agreement Bill, and with an 80-seat majority, he will be able to prevent any further delays to the Bill.

Expect the term Free Trade Agreements (FTA) to take up much of the print and digital space over the next year. Based on the EU’s agreement with Canada, the Comprehensive Economic and Trade Agreement (CETA) where goods traded between Canada and the EU are not subject or pay very little taxes.  

The question is whether the UK is looking for a CETA-type deal in the forthcoming negotiations after Brexit. CETA model could be a template for the UK's trading relationship with the EU after Brexit. And of course, there is a focus on how Sterling will be affected.

ITV News broke this story on Monday 16/12 and the Pound, which had rallied in the pre-election periods including a two-year high immediately following the election result, was less impressive on Monday evening. It now looks like 1.35 is a Cable top.

The news probably cements the idea that 1.35 is a near term top for Cable and favours a correction to 1.3050, with Sterling currently sitting around at 1.3077 (Wednesday 18/12 3.40 pm).

Above: Pound performance Vs major rivals the last week 18/12). Source: Pound Sterling Live.

The post-election Pound advances are tempered with the real possibility of Brexit on World Trade Organization (WTO) conditions should there be no EU deal. 

Johnson played a canny election game, and he needs to be on top form over Brexit. If he decides to leave the EU on WTO terms, then there is potential political fallout (especially the backstop issue).

Friday’s rubber-stamp vote to complete the EU negotiations by the end of 2020 without further extensions will endorse the popularity of Getting Brexit Done. But Sterling may have already peaked and that there could be a further correction as the devil gets into the detail of EU negotiations.

Does Boris Johnson have the edge?
18 December 2019

It's not even a week since the ballot boxes were emptied and prime minister Boris Johnson is getting stuck into his winning 'Getting Brexit Done' mantra. And Sterling is getting a tad shaky. After the spike buoyed by the election result, by Wednesday 17/12 the Pound has well and truly lost momentum as sources were carrying the idea that the PM was planning to use a no-deal cliff-edge as part of his negotiating tactic with the EU.

With around six weeks to go until the UK leaves the EU, Johnson’s vision is literally 2020 (the end of December of next year, to be precise) as the time when the next phase of the negotiations will end, a date that will be on the UK statute book. Johnson's plan kicks off on Friday 20/12 with an amendment to the Withdrawal Agreement Bill, and with an 80-seat majority, he will be able to prevent any further delays to the Bill.

Expect the term Free Trade Agreements (FTA) to take up much of the print and digital space over the next year. Based on the EU’s agreement with Canada, the Comprehensive Economic and Trade Agreement (CETA) where goods traded between Canada and the EU are not subject or pay very little taxes.  

The question is whether the UK is looking for a CETA-type deal in the forthcoming negotiations after Brexit. CETA model could be a template for the UK's trading relationship with the EU after Brexit. And of course, there is a focus on how Sterling will be affected.

ITV News broke this story on Monday 16/12 and the Pound, which had rallied in the pre-election periods including a two-year high immediately following the election result, was less impressive on Monday evening. It now looks like 1.35 is a Cable top.

The news probably cements the idea that 1.35 is a near term top for Cable and favours a correction to 1.3050, with Sterling currently sitting around at 1.3077 (Wednesday 18/12 3.40 pm).

Above: Pound performance Vs major rivals the last week 18/12). Source: Pound Sterling Live.

The post-election Pound advances are tempered with the real possibility of Brexit on World Trade Organization (WTO) conditions should there be no EU deal. 

Johnson played a canny election game, and he needs to be on top form over Brexit. If he decides to leave the EU on WTO terms, then there is potential political fallout (especially the backstop issue).

Friday’s rubber-stamp vote to complete the EU negotiations by the end of 2020 without further extensions will endorse the popularity of Getting Brexit Done. But Sterling may have already peaked and that there could be a further correction as the devil gets into the detail of EU negotiations.

For the Best Exchange Rate

Thanks! We'll be in touch
Ready to open an account, start here

For immediate assistance please call

+44 (0)20 3880 0575

First Name
Last Name
Email Address
Phone