I’ve reintroduced Brexit into our macro narrative of late because it (the UK leaving the EU with no trade deal come 10/31, that is) indeed carries serious ramifications for global markets.
Bespoke Investment Group left no doubt in their morning commentary:
…anything which emboldens Johnson and other hard-liners who bluster
about no deal is bad for sterling because regardless of their leverage in the UK internally and self perceived leverage over the EU, they have no leverage to renegotiate the Withdrawal Agreement. A
failure to do so and opting for no deal Brexit instead is a toxic result for sterling, which would be
crushed by the inevitable collapse in economic activity which would follow.