Spread Bettors Capitalizing on 45’s Pro-Brexit Views
According to Trump, ‘The Brexit was Good for Britain’
The US President-elect, Donald J. Trump was quoted as saying: ‘I think Brexit is going to end up being a great thing.’ Donald Trump is no stranger to controversy – he built his entire campaign on blunt force trauma, much like the pugilist Rocky Balboa. He has shocked, offended and ridiculed his adversaries, including the media, in his dogged determination to tell the truth, as he sees it. Recently, Trump sat down with The Times and the Former Justice Secretary, Michael Gove. Trump will be officially sworn in as the 45th president of the United States on Friday, January 20, 2017. Like him or loathe him, he is the world’s most powerful leader and his opinion carries tremendous weight.
On the issue of a Brexit, Trump is of the opinion that the United Kingdom’s decision to break from the ranks of the single trading bloc will prove beneficial to non-European partners, such as the US. Trump’s opinion is strategic in nature. The short-term ramifications of a Brexit are at best disastrous, what with the severe weakening of the GBP and growth prospects for the UK manufacturing sector. On a plus note, President-elect Donald J. Trump is pushing for an improved trade deal between the United States and the United Kingdom. He has been crystal-clear about the importance of the US/UK political, economic and military relationship. In fact, Trump has gone out of his way to reassure Briton’s that the US will remain the UK’s staunchest ally.
Trump stands in contrast to Obama on the Brexit issue
President Obama and President-elect Donald J. Trump are on opposite ends of the spectrum when it comes to the Brexit issue. Obama cautioned Britons about the dangers of breaking from the European Union. Prior to June 23, 2016, Obama meddled in the domestic affairs of the UK by urging voters to reject a Brexit. In fact, Obama went a step further and warned Britons that they would be at the back of the line with the US if they voted to break from the European Union. Now, spread betting traders are displaying increased optimism when it comes to Britain’s economic future outside of the EU. Many more options exist, including a powerful trading relationship with the world’s #1 biggest economy, the US.
Trump has also shown scant regard for overvalued currencies. Over the weekend, he was blunt about his perception of the dollar being overvalued. This immediately led to a weakening of the USD and currency markets on Tuesday, 17 January 2017. Trump believes that part of the reason for a strong USD is an unusually weak (artificially maintained) CNY. As such, Trump is also of the opinion that a weak GBP is not necessarily a bad thing. It allows for stronger export potential, and a much better performance of stocks listed on the FTSE 100 index. The incoming US president has been unequivocally supportive of a Brexit from inception to the present day.
Brexit Uncertainty A Real Concern
However, the uncertainty surrounding a Brexit remains. The British Bankers Association (BBA) has been pushing for a framework to be in place before Prime Minister Theresa May invokes Article 50 of the Lisbon Treaty. The Labour Member of Parliament, Caroline Flint expressed her bemusement at the Trump interview, but noted that a strong working relationship with the European Union and the United States would be beneficial to the UK.
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About Brett Chatz
Brett Chatz is a graduate of the University of South Africa, and holds a Bachelor of Commerce degree, with Economics and Strategic management as his major subjects. Nowadays Brett contributes from his vast expertise in online trading for spreadbettingreview.co.uk.