Brexit

In the FX space, did the dollar fall because of a marked improvement in Investor risk appetite, or because the pound bounced sharply on the back of the Brexit deal? We think it was due to the latter. Well done to Prime Minister Sunak. He has scored an ace in renegotiating aspects of the UK’s Brexit deal with the EU and staging a highly orchestrated press conference with European Commission President Ursula von der Leyen.

Yesterday UK PM Rishi Sunak and European Commission President Ursula von der Leyen announced a deal on the Northern Ireland Protocol (NIP). The NIP tackles the post-Brexit issue of implementing an EU-border between the Republic of Ireland and Northern Ireland, which would violate the peace agreement from 1998, all the while still keeping the British inner market intact. While a date is not yet set for the UK Parliament to vote on the deal.