Brexit – the ongoing negotiations continue after the referendum that occurred 4 years ago in 2016. Over the course of the week, politicians and leaders from the UK and EU have weighed in on the possibility of a deal. It was during the course of this week, that final terms were to be set in order for the United Kingdom to leave the EU on agreeable terms, as scheduled.
The deal now hangs on a very narrow tight rope. Investors and observers alike were teased last week over “a possible deal”. However, as time progressed into the weekend, the road to a deal seems unclear with a “no-deal” Brexit being ever more likely to occur. Both sides have agreed to continue their talks with Boris Johnson stating that Britain is willing to continue further.
Over the weekend, French President, Emmanuel Macron has also voiced his willingness to continue the talks. With both sides striving to achieve a deal that would secure the UK’s trade and security during its exit from the European single market, perhaps we may see another extension of the deadline for Brexit.
After 4 years of negotiations, the UK and the EU has found themselves dead in the water once more. Markets have become uncertain of the potential movements. GBP pairs may see some additional volatility as news continues to come out regarding the deal. Upon the opening of the markets on Monday, we may witness yet another gap.
The negotiations are slated to last at least until Christmas breaks begin on the 24th of December. Until then, the markets will be quite unpredictable.