The markets realize that the only real certainty is uncertainty within Johnson administration

It took just one week for sterling’s significant gains to become destroyed on the currency markets.

After Boris Johnson took the keys to Number 10 having a resounding victory most people hailed a new era of certainty under his administration.

No more hung parliaments, embarrassing Commons defeats and cliff-edge Brexit moments now the Tories possess a 78 seat buffer to play with.

The reality couldn’t be further from the truth.

Pound completes a round trip

Earlier now the pound completed a round trip having momentarily spiked in the wake from the general election.

The tumble had been prompted by government intends to eliminate any extension to the transition period beyond the end of the coming year, bringing the prospect of a no deal back to play, completely unnecessarily.

Neil Wilson, city analyst at Markets.com, said: “I must confess to believing he wouldn't have to be so drastic, that the large majority offered the flexibility yet strength a government craves in deal-making.

“This creates another cliff-edge and may create yet more months of uncertainty for investors just whenever we thought all was squared away.”

More to come

Yet the Brexit Bill will probably be just the oncoming of an uncertain administration propped up with a very certain majority.

Johnson has a new crop of blood-thirsty Brexiteers on his side now, and they'll all be to deliver on the divorce no matter what.

We also must not forget the election happened from the background of an economy which has seen weak investment and stagnating productivity and wages.

Wages for median workers are still below 2007 levels, and also the government’s own impact assessments of the Brexit deal give little hope that an economic revival is in the offing.

Impact assessment

According to independent trade experts Johnson’s Brexit plan would cut back the UK economy by almost 2 per cent.

Even if mitigating trade handles the US, Australia and New Zealand were somehow agreed at the same time as writing a Brussels deal, the Conservative Party leader's withdrawal plans would still see UK output decline by 1.4 per cent.

The devastating downturn would further wreck a UK economy that based on official ONS figures this month is suffering its worst performance in over a decade.

All just months following the country was one negative quarter from an economic downturn.

We’re not out of the woods yet. Not even close to it.