The First Day of Brexit - Forex News by FX Leaders

The First Day of Brexit

Posted Wednesday, March 29, 2017 by
Skerdian Meta • 2 min read

Today marks the first official day of Brexit and news is pouring in from all sides. UK Brexit/finance minister spoke on BBC radio earlier this morning.

You´d have expected to hear him mention real plans about what the UK is aiming to gain from the coming two years of intensive talks. Yet, all I heard was wishful thinking. He claims he´s confident that the UK will come out in a better place than they are now, but the outcome seems uncertain as it seems that the UK is entering talks without a clear plan.

The British have accepted though that they won´t fully be part of the single market. In the beginning, they were very confident. Their goal was to be able to hand pick the best of the EU and the single market. Now Hammond has acquiesced that this doesn't seem likely.

Another issue that demands a solution is the issue of border control between Northern Ireland and Ireland, though I can't honestly see how it will work. For a few month I lived in a small town which is split between the two countries. In a town like that, where does one place a border? Do they place a barbed wire fence down the center of town?

Regardless, PM May made her statement at the UK parliament at 11:30 GMT. EU´s Donald Tusk just tweeted that he received the Brexit papers from the UK, so now it all begins.

May has just said that the UK will begin to decide for itself how to spend its money. This has been one of the biggest points of dishonesty amongst UK politicians. For decades they have lead the public to believe that the EU was handling all their money and politics. In truth, UK politics have been responsible for all that has happend in the UK (good and bad) in the past 50 years.

Although Brexit is underway, the GBP seems to be completely unaffected. I hope to see a higher push into 1.28 (at the very least). If we do get there, I´ll be very tempted to short the hell out of GBP/USD and go long on EUR/GBP. The latter seems a safer bet though, considering Trump and his spontaneous decisions.

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About the author

Skerdian Meta // Lead Analyst
Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.
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