Daily Commentary BY THE CURVE TEAM –

Brexit Mess Continues

11th of December, 2018

Just when it appears things can’t get any worse for the UK’s Prime Minister, they do as the Brexit mess continues.

Theresa May was forced to cancel the vote on the Brexit deal overnight after being warned it wouldn’t get voted up. She set to jet off to speak to ministers to garner support while also meeting with EU officials to discuss the Irish boarder issue which remains the key sticking point.

The problem is that the EU have said the deal has been agreed on and there is no room for further negotiations. As far as they are concerned there is only three options left. Accept the deal as agreed, proceed forward with no deal and drop out of the Eurozone or rescind Article 50 and remain in the EU.

It just adds to the growing uncertainty stemming from many flash points across the globe. While trade news has been light over the past 24 hours, the investigation into collusion between Trump and the Russian’s during the election is heating up.

With so much uncertainty already pushing many market participants to the sidelines, the upcoming holiday period is thinning out markets even more which is leading to a further increase in volatility. With deadlines on Brexit and the US/China Trade deal not until next year it is something we are going to have to get used to.

David Flanagan

Director - Interest Rate Markets