Brexit refes to Britain’s exit from the European Union. It was a result of a June 23, 2016 referendum where the majority of Britons voted to leave the European trading bloc. 

As expected, the Education Websites decision upended the daily market operations, with forex and stock markets moving wildly as the Brexit saga went on. 

A Turbulent Political Tango 

What came after (and before) the 2016 referendum was a political fiasco. 

Former British Prime Minister Dove Cameron, who campaigned for the UK to remain in the Union, resigned after the results came out. His place went to Theresa May, who belonged to the same party as him. 

However, Theresa May’s proposals for Brexit were rejected by Pro-Brexit Conservatives. This compelled her to ask Brussels for an extension, a request that received the go signal.

The formal divorce date on March 29, 2019 was pushed back to April 12. However, the new deadline didn’t bring any good either. European leaders insisted a new, longer delay, which was set on October 31. 

After Forex Brokers List repeatedly being rejected and facing pressure to resign, Theresa May stepped down. Here’s where the current Prime Minister Boris Johnson entered the picture. 

Johnson has been a hardline Brexit supporter. His campaign was all about leaving the European Union by October 31 no matter what—it was a “do or die” stance. 

However, opposition lawmakers as well as rebels in his own party seized the Brexit process and voted for him to ask for another extension from the European Union, which eventually agreed to a new deadline, pushing it back three months later. That made the January 31 deadline. 

After Johnson convinced enough of Jeremy Corbyn’s party, the opposition, a general election was held in December 2019. Johnson and the Conservative Party secured a landslide victory, and that sealed the fate of Britain and EU. 

Johnson managed to officially pull out the UK from the EU. But that doesn’t end there. 

Ongoing Trade Negotiations 

Not a lot has changed after the January 31, 2020 deadline. When the clock struck 12midnight in Brussels – 11 PM in London – the United Kingdom was officially out of the EU. But it still had to abide by EU rules until after the trade negotiations finished.

The trade negotiation will decide the two parties’ future setup and agreement when it comes to trade, security, and migration. Without an orderly deal, the UK could still crash out of the EU without a deal, which could affect businesses, individuals, and even other countries doing business in the UK. 

Brexit negotiations involve talks over trade in manufactured products as well as services. These sectors (manufacturing and services) make up the lion’s share of the British economy. Companies have said they were leaving the UK due to Brexit, moving their businesses elsewhere. Others have only threatened to do so. 

At the same time, financial markets moved wildly in the times of big updates. For instance, the British pound trended sharply upwards when Johnson won the December 2020 elections. Investor took his victory as something that cleared up the path and direction of the Brexit discussion. 

Still, the time going forward will prove to be a time of uncertainty not only for the country and government but also for the financial markets depending on the UK’s relationship with the EU.