The UK election is over, it is now time to focus back on Brexit
A couple of reports since the landslide election victory for the Conservatives all sang a similar tune, that Brexit negotiations may not necessarily get any easier just because of the large majority commanded by Boris Johnson now.
Pointing out a few: FT, The Guardian, The Times, The Telegraph
If you need a background on why that is, you can check out this post here.
For the EU, they are rather concerned about Johnson's major contradiction set out in his Brexit plans - that is to separate from the EU but also want a comprehensive trade deal struck in just under a year's time.
As such, EU officials have been quick to warn that if he intends to "bully" them in negotiations given the short time frame, then he has it all wrong.
Johnson's Brexit deal sets out that negotiations for a future trade relationship - transition period - can be extended by "one or two years" but must be agreed before July 2020.
However, he has categorically ruled it out time and time again and the catch is that with a large enough majority now, he can pass the withdrawal agreement bill so as to stipulate that only the government can seek such an extension request.
That means the parliament voice - which has blocked threats of a no-deal Brexit in the past - will not even be in the picture if trade negotiations go south next year.
So, if Johnson keeps firm on not extending the transition period beyond the end of next year, the UK will leave the EU without a deal anyway at the end of all of this.
As much as the pound remains a buy-on-dip at the moment, this is something that could prove to be the currency's undoing in the longer-term outlook (probably after Q1).
