Brexit Limbo
At present Theresa May is in talks with Jeremy Corbyn in order to try and come up with a mutually acceptable deal to put to Brussels. The problem is May can’t even get a deal that is acceptable within her own party let alone Labour as well.
Her deal has been rejected three times and Brussels are stone walling us on the Irish border. Brussels have reiterated there will be no changes to the deal on the table yet May continues to try and gain concessions.
I believe Brussels are making the UK’s exit from the EU very difficult. If the UK were to gain decent terms and leave in a quick fashion it could encourage other countries to follow suit, creating a domino effect. Brussels would like to avoid anything that threatens the bloc.
Brexit has reached an impasse and the situation will remain in Limbo until we get firm news on Brexit progression. Personally I feel we could be in a very similar position to where we are now in October.
CHF could gain value due to safe haven status
Sterling will liekly remain fragile against the Swiss franc and the majority of major currencies until we have some clarity on the Brexit situation. The Swiss franc could prove to be a destination of choice for investors due to global economic uncertainty. Ongoing trade wars that have been started by the Trump administration, a slowdown in economic global growth and Brexit are influencing investors to seek out safe haven currencies such as the Swiss franc which could strengthen the currency against the pound.
Tags: Jeremy Corbyn,newsletter,Theresa May
