A recovery underway? Awaiting court ruling on Article 50 – BBH

Analysts at Brown Brother Harrimans noted that a hard Brexit is one that denies the UK access to the single market on the same terms as is the case currently. 

Key Quotes:

"A soft Brexit preserves this access.   The dilemma turns on how hard the UK wants to free itself from the EU principle of free movement of people, though it is not a member of the Schengen Agreement."

"The UK's "Brexit" team, which Prime Minister May selected, is inclined to push for hard Brexit.  For them, limiting immigration is the number one priority.  The former head of UKIP was quoted in press putting the fine point on it:  less prosperity is acceptable if it means fewer immigrants.   On the other hand, Parliament is coming from the other direction.  There is both a constitutional issue of the role of parliament as well as a more moderate approach to Brexit. 

The UK High Court is expected to announce its ruling. Sterling's near-free fall in the foreign exchange market is a reflection of the risks of a hard exit.  The value of UK assets is understood to be less if it is no longer has access to the single market.  The greater the role of that the High Court insists on for Parliament, the more hard Brexit may be tempered.  In turn, this could help spur a short-covering recovery of sterling."

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