Brexit speech tomorrow is a key risk event - Nomura
|Analysts at Nomura explained that in terms of catalysts for the next move in GBP, tomorrow’s Brexit speech is a key event risk.
Key Quotes:
"It could confirm whether the UK is seeking a two-year transitional deal or not and if that deal would include single market access during that time.
If the outcome is a risk event (of a possible “cliff edge” Brexit) that is delayed a further two to three years by this transitional arrangement, it will be kicking the can of Brexit further down the road.
Whether or not that will be far enough to reduce the market’s negative view of it is one thing, but the lower immediacy of it may lessen the focus of economists’ “Brexit bias” and allow them to take more seriously what the current state of play means for the long-run outcome of UK rates and GBP, both of which should be higher in our view."
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.