Uncertainty to prevail in coming two years of EU-UK Brexit talks

London

THE European Union (EU) has agreed on a hardline, united front during Brexit negotiations, illustrating that it will be exceedingly difficult for the parties to forge a compromise agreement.

Despite these concerns, sterling has rallied considerably in the past few weeks on hopeful expectations. Hedge funds and other former sterling bears have been hastily covering short positions. They and other pound buyers believe that a large Conservative majority after the June 8 elections will give Prime Minister Theresa May the mandate to conduct the best possible Brexit deal for the UK. Moreover, with political uncertainty ahead of French presidential and National Assembly elections, continual concern over Italy, and Greece and German elections in September, some global investors are beginning to regard the UK as a safe haven.