Yesterday I heard rumours that Tony Bair was considering entering the main stage of UK politics once again. Scanning the recent economic/political news, I saw that these rumours have been floating around for months, but only recently he decided to move all his team close to the UK parliament.

I know some blame him for the Iraq war, but he’s been one of the most successful prime ministers of all time in the UK. So, Blair’s return is a big thing for western politics after all this right wing advancement in Europe and in the US, especially since this return is directly linked to Brexit.

If he is successful in re-entering the UK politics, then the tide might turn. He has a lot of charisma as well as being persuading with interesting ideas, which is totally the opposite of the numb politics that surround the UK political scene right now. So I don’t think he’ll have a lot of difficulties beating to pieces the pro Brexit campaigners of all sides, let alone the unelected UK Prime Minister Theresa May and her likes.

The big news hit the media over the weekend and the GBP traders didn’t wait long to take advantage of that. GBP/USD jumped about 50 pips higher just as Tokyo session started and it is making another leg higher right now.

I don’t know if he’ll be able to enter main stage politics again, but if he does, this will be a big thing for global politics. The right wing parties have taken over in the UK and the US and they are advancing in several EU countries too, so Blair will offer a decent opposition to this new wave.

Judging from GBP/USD price action, the market loves this. The right wing politics bring a lot of uncertainty with them because they have come to power with promises of changing the current global political and economical system, so someone like Tony Blair who offers to keep the global macro status quo is taken as a safe bet by the market.

That’s why we should be careful with GBP shorts, guys. The Brexit vote was a massive shift for the GBP, but the recent events in the UK (remember UK High Court decision) might as well kill Brexit before it happens. If that would be the case, then don’t be surprised to see GBP/USD at 1.60 in no time, after all, the GBP lost its head on market expectations alone because Brexit hasn’t happened yet, so it won’t be a big surprise to see the GBP up in the podium of winners where it was before Brexit.