CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 72.5% of retail investor accounts lose money when trading CFDs with this provider.
You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 72.5% of retail investor accounts lose money when trading CFDs with this provider.
You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.
70% of retail investor accounts lose money when trading CFDs with this provider.
You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Please click here to view our Risk Disclosure.
Hantec Markets use cookies to enhance your experience on our website. By staying on our website you agree to our use of cookies. You can access our Cookie Policy here
Hantec Markets is a trading name of Hantec Group.
This website is owned and operated by Hantec Capital Group Holdings Limited. Hantec Capital Group Holdings Limited is the holding company of Hantec Markets Limited, Hantec Markets Ltd. and Hantec Markets Jordan Limited.
Hantec Markets Limited is authorised and regulated by the Financial Conduct Authority (FCA) in the UK (Register no: FRN 502635).
Hantec Markets Limited is authorised and regulated as an Investment Dealer by The Financial Services Commission of Mauritius (License no: C114013940).
Hantec Markets Limited Jordan is authorised and regulated as an Intermediary Financial Broker by the Jordan Securities Commission (License no: 51905).
The services of Hantec Markets and information on this website are not aimed at residents of certain jurisdictions, and are not intended for distribution to, or use by, any person or entity in any jurisdiction or country where such distribution or use may be contrary to any of the laws or regulations of that jurisdiction. The products and services described herein may not be available in all countries and jurisdictions. Those who access this site do so on their own initiative, and are therefore responsible for compliance with applicable local laws and regulations. The release does not constitute any invitation or recruitment of business.
Hantec Markets does not offer its services to residents of certain jurisdictions including USA, Iran and North Korea.
Authorised and Regulated by the
Financial Conduct Authority (FCA)
Regulated by the Financial Services Commission of Mauritius (FSC)
Regulated by the Jordan Securities Commission (JSC)
What now for Brexit as another delay is on the cards
An agreement but a blockage in Parliament
Boris Johnson somehow found agreement with the EU-27 when almost all had given up hope. However, the arithmetic in Parliament has been against him. It was important last night that the “Second Reading” of the Withdrawal Agreement Bill (WAB) had a majority of 30 in the Commons (Ayes 329 to Noes 299). This is the first time ANY sort of deal has found a majority in favour. However, Johnson’s hopes of ramming through this incredibly contentious legislation in just three days (when normal legislation takes a number of weeks) were dashed when the Government’s progamme motion failed.
This now means it is almost impossible for the Government to get the WAB through before 31st October. With EU Council President Donald Tusk recommending another extension, this means another delay to Brexit. Perhaps our rubber stamp image is a bit premature, but it is overwhelmingly likely now.
The key is for how long? Either a technical or political extension will result.
Donald Tusk has not specified how long an extension would be.
What next?
The EU-27 will decide on whether an extension will be granted. Given that the EU do not want to be seen driving a no deal, it is highly likely that an extension to Article 50 will be granted. Boris Johnson has said that he will discuss with the EU how to move forwards.
In the coming days the EU-27 will presumably answer the letter that Boris Johnson sent on Saturday (requesting an extension). This will lay out the terms of an extension they are offering.
Boris playing the game, but a General Election is an attempt to break the log jam
In an ideal world, Prime Minister Johnson would want it all. He would want his form of a Brexit deal (tick) that has been ratified (unticked) but also have a stable government through a general election. He has this possibility of all this if there is an extension to at least 31st January. He could easily insist to the EU-27 that a majority of 30 in the Second Reading of the WAB is insufficient to pass all the necessary legislation for Brexit. The highly contentious bill could easily fail in the coming weeks and also be significantly amended (second referendum and or customs union attached). Johnson would argue that a short, technical extension, may not suffice.
A longer extension would allow a General Election which could change the numbers in the House of Commons to be able to push the legislation through and finally put an end to the manner of the UK’s exit from the EU.
Johnson would want to go into an election with Parliament blocking the path to a deal. If Brexit is done before an election then the result of an election is far harder to call and harder to win for the Conservatives. The Opposition Labour Party is offering a time table to get the WAB through, and this is because they know an election is easier for them to win with Brexit done. Johnson is currently solidly ahead in most polls. So why would he want to jeopardise this?
Below is a poll of polls taken from the BBC on 18th October (which was after the agreement with the EU but before the latest likelihood of delay).
What next for sterling?
We have seen sterling rally enormously on Boris Johnson achieving an agreement with the EU. Cable had rallied around 800 pips to $1.3000 before hitting a barrier. However, the uncertainty will increase if there is a political extension to the 31st October deadline.
Subsequently we see neutral to downside risk for GBP/USD now.
Two final things:
Richard Perry
Leave a reply
Recent Posts
A Brexit deal is likely but could just be a matter of time
Read More »Markets increasingly risk positive as Biden edges towards the White House
Read More »Nightmare scenario in tight US Election as Trump declares victory
Read More »Subscribe to our Market Analysis
Your data is safe with us. Please read our Privacy Notice