Traders awoke to more volatility this morning with reports coming out that Boris and his ‘Blue wall’ are planning on adding an amendment to the Brexit withdrawal bill which will rule out the chance of any further delay to negotiations with the Bloc.
This has increased bets of a hard Brexit with investors who have taken the steam out of the Pounds recent bullish run. If there is no chance of an extension, there will be only 12 months of negotiating between the UK and EU to agree a deal before the agreement defaults to World Trade Organization terms. Some Senior EU figures are very doubtful that there will be enough time to negotiate a deal with out an extension, raising fears of a hard Brexit.
On the back of this news GBP/EUR fell into the low €1.18’s and the cable rate dropped to a low of €1.3163, before recovering slightly to $1.32 at the time of writing.