Brexit Bargaining

The British pound jumped 2.3% following the announcement of a snap June election. Presently, the Hard Brexiteers (HBs), those calling for a total break with the EU without any trade pact, have enough seats in Parliament to limit PM May’s maneuvering room. The anticipated larger parliamentary majority with a smaller percentage of HB backbenchers, will weaken the HBs thereby boosting the probability of a better trade deal and improved growth.