A Brexit Deal Has Been Reached. What’s Next?

The UK and EU have both announced a deal has been agreed that would avert the prospect of a disorderly exit that see the UK leave EU on Oct 31. Sterling shot up as high as 1.2990. This deal will still need to get the approval of UK parliament. The DUP has stated that it would not support this deal. It could go the same way as former PM Theresa May’s deal.

The deal see Northern Ireland remains in the custom union with the EU while the rest of UK would leave the EU custom union. This custom arrangement is not beneficial to the economic well being of Northern Ireland. EU will have veto power over which goods could travel freely between the UK and EU. DUP will not support this deal and abstain but will vote down the deal against its coalition partners.

On Sat, 19 Oct, this deal will be taken to the British parliament where a meaningful vote will be taken. If parliament approves this deal, UK will leave EU but subject NI to EU ‘s custom. If parliament votes down this deal, PM Johnson is obliged by law to seek an extension from EU. There is a report that Johnson is seeking EU leaders to not allow an extension so that those who want UK to only leave with a deal will be forced to accept Johnson’s deal.

Has Sterling ended its rally? There are divergence from Stochastic and MACD. Price has reached the Fibonacci161.8% projection.

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