8 December 2022 - Brexit is driving economy lower compared to its peers

Beyond Currency

The UK economy is more significantly affected by the current downturn in activity, since businesses don’t have access to long-established markets that they are able to access during tough times that their overseas competitors do. Brexit saw the UK Government close the door on several time-honoured relationships with traditional allies, and that is filtering down to businesses who need access to those associations to help them when times are hard. One ally that remains constant, although it is not, currently, prioritizing a new trade deal, is the U.S. An agreement has been reached for the U.S.to continue to maintain high levels of liquified natural gas which will guarantee supplies throughout a winter which is shaping up to be both long and tough. The two nations have agreed an energy partnership to enable the UK to reduce its reliance on Russian energy and accelerate the push to net-zero. Although the U.S. has a similar arrangement with the European Union, the UK was in danger of being left out in the cold, both figuratively and literally, since it was not part of the negotiations held between Brussels and Washington since Brexit. Beyond Currency Market Commentary: Aims to provide deep insights into the political and economic events worldwide that can cause currencies to change and how this can affect your FX Exposure.