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In the view of the analysts at Australia and New Zealand Banking Group (ANZ),  Brexit uncertainty will be intense in coming weeks, as we head closer to the October 31st deadline.

Key Quotes:

“Both the UK and EU want a deal. Brussels is willing to listen to alternative UK proposals that are compatible with the Withdrawal Agreement and no hard border in Ireland.

UK Prime Minister Boris Johnson cannot reverse his negotiating position that the UK will leave the EU on 31 October if a deal cannot be reached. It would be detrimental for the Conservative Party to do so.

Many opposition and remain MPs in Westminster want to rule out completely the risk of a no-deal Brexit. A motion of no confidence in Johnson may be tabled soon after Parliament returns on 3 September. That raises the risk of an early general election, possibly before 31 October.

We are all familiar with the panicky market conditions that the UK’s political landscape can create. In the short-term, sterling remains a reactive currency. We remain of the view that GBP is undervalued and a medium-term buy.”