There has been a lot of speculation over recent hours on the issue of whether the U.K. will remain in the European Union’s Customs Union even after Brexit, with a report earlier in Britain’s Daily Telegraph stating that the British Prime Minister Theresa May was preparing to announce that Britain would remain a member of the Customs Union after 2021. However, a few hours ago the Prime Minister stated categorically that Britain would not remain in the Customs Union and will instead be negotiating a customized deal. The problem is that its all words, as is so much of the Brexit aftermath. The May government is doing as much as it can to leave the European Union and “respect” the result of the Brexit referendum, Britain’s largest ever democratic exercise in over a thousand years of its national history, while remaining in the structure in everything but name. What is the difference between being a member of the Customs Union and negotiating a customized deal that will probably replicate it almost exactly? Nothing but a name.
There is a genuine doubt at to whether the pro-Brexit wing of the governing Conservative Party will finally rebel and bring May down, or at least force her into taking a policy of a “harder” Brexit. Therefore, the British Pound has been the most volatile of all the major currencies for many months now, with an average daily percentage change of 0.86% over the last 100 days, compared to 0.77% for the EUR/USD and 0.71% for the USD/JPY currency pair.
Where there is uncertainty, there is opportunity. The best places to trade the British Pound are in the GBP/USD currency pair, which has been ranging between 1.3600 and 1.3450 for about two weeks, and GBP/JPY, which is showing more of a weak bullish trend due to the relative weakness of the Japanese Yen.