Analysts at Bank of Tokyo Mitsubishi explained that the pound is likely to continue being driven by sentiment over ‘Hard’ versus ‘Soft’ Brexit over the short-term although given a clear conclusion on that won’t be obvious for some time we are sceptical of that over-simplification of the Brexit negotiations persisting.
"Withdrawing from the Single Market as a starting point does not necessarily mean a favourable trade deal will not be the final outcome."
"What developments this week may also have taught us is that the government is unlikely to be given a free hand in determining the balance between ‘Hard’ and ‘Soft’ Brexit and parliament may well act as a constraint on the government taking a ‘Hard’ Brexit approach, thus helping to limit negative pound sentiment from current levels."
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.