Brexit Deal Gives More Opportunity to FX Brokers

British prime minister Boris Johnson said on Thursday that he had reached a "great new deal" with the EU

British prime minister Boris Johnson said on Thursday that the UK has reached a deal with the European Union regarding Brexit.

“We’ve got a great new deal that takes back control — now Parliament should get Brexit done on Saturday so we can move on to other priorities like the cost of living, the NHS, violent crime and our environment,” tweeted the British premier.

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The announcement sent further tremors through the foreign exchange markets, which have been particularly erratic over the past week.

“As expected, we are entering a volatile phase of Brexit, which is causing large swings in sterling pairs,” said Hormoz Faryar, global head of institutional sales at Equiti Group.

Not all on board

Jean-Claude Juncker, the president of the European Commission, also released a statement on Thursday. The commissioner said that the deal would lead to a “fair and balanced agreement for the EU and the UK.”

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But not everyone was positive about the deal. The Democratic Unionist Party has said that it cannot support the proposed agreement.

In a statement, the Belfast-based party said that some of the terms of the deal, relating to VAT and customs issues, were unacceptable.

“We will continue to work with the government to try and get a sensible deal that works for Northern Ireland and protects the economic and constitutional integrity of the United Kingdom,” said the party.

Any deal will also have to be approved by the British parliament, something that MPs have been reluctant to do in the past.

In the meanwhile, FX volatility continues to sore – a positive for FX brokers and CFD providers who stand to make good gains from the upheaval.

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