Boris Johnson states that UK is coming out on 31st Oct and US/UK making tracks towards a trade deal

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  • The recent Brexit headlines are two way for the Pound.
  • “We are going to restore trust in our democracy and come out of the EU on October 31st” – Boris Johnson.

UK PM Johnson has said that he will restore trust in the UK’s democracy and come out of the EU on October 31st. This statement was very quickly followed by additional Brexit related headlines which is giving off mixed signals for sterling traders. 

“We are going to restore trust in our democracy and come out of the EU on October 31st!”

Boris Johnson said. 

Additional Brexit headlines:

  • Senior Trump Admin. Official: US, Britain discussing partial trade agreement that could take effect on Nov. 1 – RTRS.
  • White Houses’ Bolton, UK Trade Sec. Truss discussed the possibility of US Pres. Trump, UK PM Johnson signing road map declaration toward trade deal at G7 summit – RTRS.
  • Moody’s: Brexit is Ireland’s largest external threat to growth.
  • US’ Bolton, UK Chancellor Javid discussed the possibility of a temporary trade agreement that covered everything – RTRS.

FX implications:

Ther is nothing here concrete enough to give Sterling direction one way or the other. Hard Brexit statements such as this such would tend to weigh on the pound, will trade solutions for the UK and US is very positive and should support the pound. 

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