The “great new deal” could have been a tweet from President Trump, but this time it was his clone across the Atlantic, Boris Johnson, who announced such a feat. Just like other fights he has fought in the United Kingdom Parliament, should result in yet another failure for the newly sworn Prime Minister. Although Johnson has reached a primary understanding with the European Union, it will still have to be unanimously rectified by the 27 Member States, as well as the House of Common in the Westminster. This last hurdle practically impossible to overcome as Johnson’s ally, Democratic Unionist Party (DUP) has already announced that it will vote against the pre-deal, thus drastically reducing the odds of the Brexit soap opera having a positive outcome before the October 31st.
Photo by Amy Reed.
The British Pound was once again wild, with the GBP/USD peaking from $1,282 to $1,289 within an hour as soon as Johnson’s tweet was known. Gains were later annulled during the next two hours, showing in a correction investor made after the DUP indicated their opposition to the “great new deal”, claiming the deal violates the Good Friday Agreement (GFA) which allowed peace between the Republic Ireland and Northern Ireland. We will know the next chapter of this saga on Saturday, however regardless of the outcome from the vote, it is almost certain that the British Pound will have a few more days of additional volatility.
