On from the EU Withdrawal Bill, a victory by the incumbent government and on the face of it, a positive motion that could give increased clarity on the next coming stages of Brexit. For me however, politics in the United Kingdom takes on an even more interesting tone if the rumours are to be believed. It’s not ruled out that between November 2017 and February 2018 a snap general election could be called, possibly arising from a vote of no confidence. This is based not only on the unexpected gains made in the last national election by the Labour party and the dire performance of the Conservative party, but also on the perception of how poorly Brexit is being handled.

Why is this important? One scenario would be a Labour party victory forming a possible minority government coalition with the SNP, whose support will be dependent on an agreement to either an extremely soft Brexit or certainly in its current form, Brexit not happening at all. Or at the very least another referendum. To say it is a game changer is an understatement and potentially undervalues Sterling by as much as 15-20%.

Jordan Hiscott,
Chief Trader

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