The UK Government chose to announce their plans for a possible no Brexit deal yesterday, which resulted in many new agencies including the BBC reporting all manner of scare sorties and scenarios that could, not would occur if the UK did leave the EU without any form of Brexit deal in place.
Having watched many of those news stories myself it was as though a major apocalypse would strike the UK the very second they did leave the EU with no deal in place, with ridiculous talk of planes being grounded and unable to take off, food supplies running low across the UK and also of hospitals and pharmacies running out of life saving drugs and medicines.
In fact, there was also talk of expats and UK citizens taking holidays abroad not being able to use their debit and credit cards throughout Europe, which did strike me as strange as there has never been any problems using such cards in countries that are not part of the EU, irrespective of whether the UK has a trade deal with those countries or not!
All that talk of doom and gloom though has had a rather dramatic effect on the value of GBP, and having just taken a look over the money markets it value has tanked somewhat since the no Brexit deal reports were released, and it may continue to drop in value for the week ahead too!
No Brexit Deal could be a Good Thing!
It does have to be said that a no Brexit deal could actually be a good thing for the UK as a whole, for there would be an immediate saving of tens of billions of Pounds if they did leave without any deal in place as they wouldn’t be required to pay their contributions into the EU up until the end of the current financing period.
In fact, the drop in the value of GBP is of course having an instant effect of the cost of exports from the UK to other countries, with goods being much cheaper to overseas customers, and many people from all manner of European countries and much further afield too are buying property in the UK due to the fact the Pound is so weak.
Be Aware of the Volatility and Downward Spiral of GBP
If you have been planning on placing any GBP related Forex trades today or any time in the very near future, then just be aware of the effect that the Brexit negotiations are having on the value of that fiat currency, and be aware of the risks that it could continue to fall or could bound back in value at any time too.