Brexit Newsflash
Britain’s declaration of its intention to disengage from the European Union shook the European market over two years ago. In just 2 days, the EU summit will take place (October 17-18), and its outcome could greatly affect this market. This important meeting is seen as the deadline for the two parties to reach an agreement regarding the conditions of Britain’s departure. If all goes according to plan, the British and European parliaments will have enough time to approve the new contract by November. If the EU and Britain are not able to reach a conclusion next month, they will have to go with the current terms of their separation on March 29, 2019.
What assets will take the biggest hit?
This event is likely to affect the economic status of both the EU and Britain, as the latter has traded with 27 countries within the Eurozone and has a special relationship with the US.
The UK’s exports of goods and services to its American counterpart have reached a whopping £51.4 billion in 2017. The imports from the US, on the other hand, were worth £39.1 billion.
In addition, the European gold trade may take a considerable blow due to the reserve held by the Bank of England.
The Brexit and nearing EU summit are also expected to influence the volatility the GBP, EUR, USD, and other major currencies.
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