Brexit: Close, but ‘no deal’ could be closer - ANZ

Brian Martin, Research Analyst at ANZ, notes that the October’s European Union Summit failed to reach an accord on the Brexit Withdrawal Agreement, with talks deadlocked over the Northern Ireland border issue.

Key Quotes

“The inability to reach a compromise on this matter is increasing the probability of a ‘no deal’. Alternatively, an extension to the Article 50 deadline or a general election are possibilities. There are even calls for a second referendum.”

“Heightened uncertainty over the future direction of the UK is weighing on business sentiment, production and investment decisions.”

“Sterling is showing increasing vulnerability to this rise in uncertainty. A test of GBP1.25 vs USD cannot be ruled out if no resolution is forthcoming soon.”