Brexit – Just the start?Sainmaco_admin
1st on the list is Brexit! The question of whether the rest of the countries will remain within the European Union has been answered, but what lies in wait for the fate of Europe? The United Kingdom has appointed its new prime minister and the silver lining seems to be the fact that the new British Prime Minister, Theresa May has signalled that she will not be invoking article 50 before the United Kingdom has its plans settled.
This is however, met in disagreement by the chancellor of Germany, Angela Merkel, whom has clearly signalled that Article 50 must be triggered before Brexit talks. This being the political side, there is of course the economic side as well. The United Kingdom is a key trading partner with the rest of the Europe, especially in industries such as the automobile industry.
This move to invoke article 50 too quickly will surely destabilise the economy in the United Kingdom which will be a problem for them. On the flipside, the European trading partners of the United Kingdom want an early warning of the repercussions which Article 50 will bring, hence the two opposing stances. Traders should keep a watchful eye on the continued happenings of this saga and see how it will affect the Euro and the GBP!