Brexit has Only Just Begun...
06 February 2020

Sterling was under duress against the major currencies after Bloomberg Newswire reported a possible hardening of the EU stance on Markets in Financial Instruments Directive (MiFID) including a possible revoking of compromises that had been made to the UK.

This can be seen as a post-Brexit tactic against 'City supremacy' and the wider UK financial sector. An EU Directive governing research, record keeping and trading in stocks, MiFID has also come under scrutiny over its high costs to the financial sector and its constraining of business so the Directive is not without its critics.

Says John Hallahan from Privalgo: “This could cause significant grief for UK firms ability to operate on a level playing field in the EU. “We have seen cable track back to be trading below the 1.30 mark, signifying the start of what is shaping to be a volatile year for the pound, dominated by UK-EU trade negotiations.”

In itself, a A MiFID shake-up is not as concerning as this EU sabre-rattling manoeuvre ahead of the negotiations with the UK. So we can expect more of these MiFID-style tactics as the maps are unrolled with a potential cumulative effect of weakening the UK economy.

Boris Johnson's team will need to counter these moves by ensuring the UK becomes a window to the global finance world.

At Privalgo, we are on top of Sterling's fluctuations all day every day so if the volatility of the Pound is of concern, we have the experience and expertise to mitigate against the exchange risk, so please get in touch.

Brexit has Only Just Begun...
06 February 2020

Sterling was under duress against the major currencies after Bloomberg Newswire reported a possible hardening of the EU stance on Markets in Financial Instruments Directive (MiFID) including a possible revoking of compromises that had been made to the UK.

This can be seen as a post-Brexit tactic against 'City supremacy' and the wider UK financial sector. An EU Directive governing research, record keeping and trading in stocks, MiFID has also come under scrutiny over its high costs to the financial sector and its constraining of business so the Directive is not without its critics.

Says John Hallahan from Privalgo: “This could cause significant grief for UK firms ability to operate on a level playing field in the EU. “We have seen cable track back to be trading below the 1.30 mark, signifying the start of what is shaping to be a volatile year for the pound, dominated by UK-EU trade negotiations.”

In itself, a A MiFID shake-up is not as concerning as this EU sabre-rattling manoeuvre ahead of the negotiations with the UK. So we can expect more of these MiFID-style tactics as the maps are unrolled with a potential cumulative effect of weakening the UK economy.

Boris Johnson's team will need to counter these moves by ensuring the UK becomes a window to the global finance world.

At Privalgo, we are on top of Sterling's fluctuations all day every day so if the volatility of the Pound is of concern, we have the experience and expertise to mitigate against the exchange risk, so please get in touch.

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