Labour Party Election Winner Makes Brexit More Likely

Britain’s future in the European Union looks a little more shaky after a political earthquake weakened the ranks of its defenders.

The main opposition Labour Party on Saturday elected a left-wing leader who is ambiguous about whether Britain should remain part of the world’s biggest single market.

That means the government, and its main rival, are both now deeply divided over the question, and therefore less able to mount an effective campaign in favor of continued membership. A national vote will be held by 2017.

Top business leaders have already warned of the potential damage that would be caused by Britain walking away from Europe — the so-called “Brexit.”

Unlike predecessors such as former Prime Minister Tony Blair, new Labour leader Jeremy Corbyn has long been an opponent of the EU.

via CNN

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza