What will happen to the Pound after Brexit?
30 January 2020

The first part of the post-Brexit saga comes on Friday when the deadline comes and the UK formalises its exit from the EU. There are plenty of hurdles ahead in the transition period as the government negotiates a trade deal with the EU. Since the election in December the pound has been rallying on the back of the certainty of Brexit which has made a chaotic exit less likely as the government's majority ensures safe passages of its policies.

A strong pound mirrors a clean break with Europe. Yes, there are going to be difficult months ahead and the trade negotiations could hit Sterling, especially if little progress has been made by the time the deadline looms at the end of December. But economists are confident the value of the pound will not fall after the official exit on Friday.

Says Patrick Oakley, Business Development Manager at Privalgo: "It is largely believed that Boris Johnson’s exit deal is sure to get through parliament, given the strong Conservative majority. Due to this, many believe that Friday’s official Brexit date will have little impact on the Pound. “Markets have already priced in the passing of the Brexit Bill and therefore it may well become a non-event.
“The focus and any potential future volatility with Sterling will now shift to the subsequent trade talks that will follow.”

What will happen to the Pound after Brexit?
30 January 2020

The first part of the post-Brexit saga comes on Friday when the deadline comes and the UK formalises its exit from the EU. There are plenty of hurdles ahead in the transition period as the government negotiates a trade deal with the EU. Since the election in December the pound has been rallying on the back of the certainty of Brexit which has made a chaotic exit less likely as the government's majority ensures safe passages of its policies.

A strong pound mirrors a clean break with Europe. Yes, there are going to be difficult months ahead and the trade negotiations could hit Sterling, especially if little progress has been made by the time the deadline looms at the end of December. But economists are confident the value of the pound will not fall after the official exit on Friday.

Says Patrick Oakley, Business Development Manager at Privalgo: "It is largely believed that Boris Johnson’s exit deal is sure to get through parliament, given the strong Conservative majority. Due to this, many believe that Friday’s official Brexit date will have little impact on the Pound. “Markets have already priced in the passing of the Brexit Bill and therefore it may well become a non-event.
“The focus and any potential future volatility with Sterling will now shift to the subsequent trade talks that will follow.”

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