Free Profitable Forex Newsletter
Hey! This is Philip with a market update of the Free Profitable Forex Newsletter!
Fx Update: Theresa May Resigns; GBP Stabilizes Somewhat But Remains Stuck
In light of all the high uncertainties and all-time record low volatility across Fx pairs, we share market insights on the British Pound from the trading desks of some of the biggest Fx traders in the world.
Essentially, GBP outlook remains as stuck as ever as are British politics. Theresa May has resigned but the European Election showed that the British citizens remain as divided on Brexit as 3 years ago when the Brexit referendum was held.
There is no clear way forward and that is reflected in the markets with narrow and protracted ranges.
The following is from Mitsubishi UFJ Financial Group as provided via eFXPlus:
GBP: A 2nd Referendum Looks More Likely Now; Likely To Help Limit GBP Selling - MUFG
"The pound fell most notably yesterday and the strong showing by the Brexit Party has fuelled speculation of a shift toward a Hard Brexit departure from the EU on 31st October. While that risk is certainly set to grow in our opinion, the EU election results in the UK in fact underlined a consistent fact about Brexit – the UK electorate remains as divided as ever with Leave and Remain sides not budging much," MUFG notes.
"So we believe one consequence of this election result is the confirmation that the Labour Party can draw on evidence of strong support for a 2nd referendum. The Labour Party along with the Conservative Party suffered a large loss of support – Labour’s vote share fell from 25.4% to 14.1% -
and Jeremy Corbyn must now see that his policy of sitting on the fence on Brexit simply isn’t working.
So we don’t see the surge in Brexit Party support as the key takeaway from the UK election result and the prospect of a 2nd referendum is increasing – a fact that will help limit GBP selling as political uncertainty increases once again," MUFG adds.
First appeared on eFXPlus on May 28 - 08:32 AM
And here is what TD Securities has to say about GBP (courtesy of eFXPlus):
GBP: A 2nd Referendum Or A Hard Brexit? What's The Trade? - TD
"In the UK, the newly coined Brexit party captured the highest share of the votes (including UKIP, pro-Brexit parties shared 35% of the vote). Turnout was less than 40%, so it's a challenge to argue any firm conclusions on this outcome. At the same time, the total percentage of "remain" parties outstripped the pro-Brexit coalition,
coming in at 40%. The clear losers were the mainstream parties, which offers the alternative parties a chance to pitch their message about where to take Brexit. Given the shifting political sands, the outcome looks more binary than anything else: a second referendum or a hard-Brexit.
The upshot is that the impact of these elections reduces the odds of a "compromised" agreement. The next big risk event pivots to the Tory leadership process, which falls into two stages over the summer. A possible no-confidence vote also lingers in the background,"TD notes.
"We note that GBP now trades at roughly 2-sigmas from HFFV. That offers some room for a tactical bounce in GBPCHF, though that's a one week view. Beyond that, we think GBP pops will be brief and shallow, offering better levels to sell GBPUSD and buy into EURGBP dips," TD adds.
First appeared on eFXPlus on May 28 - 09:16 AM
The Forex Broker Australian Traders Are Most Likely To Recommend
Pepperstone is #1 in Customer Service, Spreads, Value for Money and more!
Start trading with the world's leading Forex broker and access the tightest raw interbank spreads starting from 0.0 pips!
If you have any questions or feedback, don't hesitate to reply to this email.
Thank you!
High Risk Warning: Please note that foreign exchange and other leveraged trading involves significant risk of loss. It is not suitable for all investors and you should make sure you understand the risks involved, seeking independent advice if necessary.
Any opinions, news, research,
predictions, analyses, prices or other information contained in this newsletter is provided as general market commentary and does not constitute investment advice. FX Trading Revolution will not accept liability for any loss or damage including, without limitation, to any loss of profit which may arise directly or indirectly from use of or reliance on such information.
|
|
|
