The rumours surrounding Brexit continue to churn out faster than a newspaper factory, as reports keep appearing across all platforms. With the amount of comments constantly being published it’s hard to believe that the main politicians do little more than make statements all day.
Whilst frustrating what this does prove is that the uncertainty surrounding the outcome is still incredibly high. However, the fact that Sterling isn’t losing ground at the moment suggests the markets maybe anticipating a positive release in the near future.
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Reports yesterday were suggesting that Theresa May is now looking towards her own Cabinet in order to make sure she can push a Brexit deal through the UK Parliament. Former Brexit Secretary David Davis, in a BBC Radio interview yesterday suggested that Parliament will vote down the Prime Minister's Brexit deal, which he argues will force the EU and UK to create a better deal.
At the end of yesterday UK Ministers were playing down the imminent chances of a Brexit deal, however at the same time Austrian officials were reporting that a deal could be agreed by next Monday. One thing that is for sure is the speculation will continue and the markets will continue to be on edge.
Today the Gross Domestic Product data for Q3 will be released and is expected to show growth of 0.2% from the previous quarter, taking the rate of growth to 0.6%. The month on month figure for September is also expected to show a slight improvement of 0.1%. The UK’s GDP was one of the main talking points at the start of Brexit as many expected there to be a significant fall in the UK economy which never really came.
Now as we potentially exit the Brexit negotiations with clarity around the corner we may start to see more investment in the UK increasing growth levels.
Should this reading come out more positive than the expected, then there is always potential for a slight boost for Sterling in the immediate reaction. Yesterday the 1.15 level was broken on the GBP/EUR rate for a few seconds with the interbank rate spending most of the day in the high 1.14’s.
The speculation surrounding Brexit appears to have investors treading water until there is any further development and every whisper causes an instant market reaction. With this in mind it’s vital to make sure you’re in contact with your broker, ready to trade on any movement.
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