What does the Brexit equation look like now?

Author: Justin Low | Category: News

With the pound struggling today, let's take a look at how Brexit is shaping up for the new British prime minister

Both Boris Johnson and Jeremy Hunt have said in their campaign talk that they would look to renegotiate a better deal with European leaders on Brexit. But the fact remains, that will not happen as constantly reiterated over the past few months.

Otherwise, they said that they would be prepared to pursue what they deem to be "very unlikely" no-deal outcome.

As we now draw ever closer to the 31 October deadline, where does that leave us?

Unless the European Union is willing to offer concessions that will lead to some form of a deal, any other outcome spells danger for the pound.

If Johnson or Hunt are unable to negotiate a new deal, they will be forced to either suspend parliament and go all out to leave on 31 October or look towards calling a general election, adding to the political uncertainty in the UK.

I still reckon the latter scenario looks the more likely but whatever it is, there isn't much optimism from Brexit for the pound at the moment. Couple that with a withering UK economy, it's not exactly the stuff that keeps a currency on steady footing.

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