It looks like the next couple of years will be a rocky ride for £ sterling, if the last few months are anything to go by. It is true that there is no absolute clarity on the finer details of the UK’s or EU’s Brexit plan, but then we are in the early stages of what will be a protracted period of negotiation – what is needed is time and the right people making the right consultations in the background.
What we do know is that the UK is stressing that Brexit will be carried out in its full spirit and the EU is reiterating that the UK won’t be able to pick and choose the terms of the relationship alone. Two fairly non-committal stances typical of two sides that may be about to enter into a protracted period of negotiation.
So we are where we started. There will be a (protracted period of) negotiation, each side wants the best for them, and we won’t get specifics until formal talks begin. Hopefully laying it out like that will save the £ sterling from 2 years of government official induced volatility, and save us all from the associated newspaper headlines.