Brexit hope may soon overcome fear - AmpGFX

According to the Greg Gibbs, Director at Amplifying Global FX Capital, the risk related to Brexit remains high, but it has not got any worse over recent months. 

Key Quotes

“Britain under PM May has been talking in terms of a hard Brexit for months, so it is difficult to understand why the market turned more bearish ahead of the speech by May on Tuesday.  The snap-back since her speech suggests that a lot of the downside risk associated with Brexit is in the price.”

“We see scope for sentiment towards the UK, in an albeit uncertain future, to improve from current levels.  Part of the reason is that Brexit is the manifestation of the anti-establishment nationalist sentiment that has become apparent in most developed economies and, to some extent, the UK may be viewed as an early-mover rather than a maverick.”

“PM May has the cache to make it work

An important factor in support of the UK Brexit outcome is that UK PM May appears to be very sensible, credible and has the respect and support of her party and the public.  She is likely to command respect in negotiations with the EU.  The same cannot be said for many other leaders of countries that have experienced or are in the process of experiencing a rise in nationalist public sentiment.”