Here’s how we decipher it

There’s some confusion about why the pound is moving down on all this Brexit news when it’s the remainers (or soft Brexit crew) kicking up a stink this time.

  • Leavers = hard exit = GBP negative
  • Remainers = soft Brexit = GBP positive
  • May facing a revolt/confidence vote from either side = huge political uncertainty = GBP negative

So, even today, when it’s the remainers who are pushing their agenda, which should be seen as a soft exit and therefore GBP positive, the possible revolt against May is trumping that (GBP negative)

Long and short, if May wins the vote tonight, we’ve got a potentially harder Brexit on the cards but then more possible resignations and/or a confidence vote. So on paper it’s two negatives. If she wins without any fuss then the political uncertainty is removed which should be GBP positive but that still leaves us with a more hard Brexit slant, which is GBP negative.

I hope that’s cleared that up ?

Trade the pound through all this? I wouldn’t trade it with your money ?

Ryan Littlestone

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