News

Sterling starting to look vulnerable again

08/11/2018

Despite a pretty good Bull run so far this month Sterling (GBP) is starting to look a little uncomfortable. Bullish indicators are starting to waver and it remains to be seen whether the rally has truly run out of steam or whether we are entering a period of weak consolidation. The main obstacle for Sterling remains the uncertainty of Brexit, with the UK’s hapless Prime Minister fixated on her ‘Chequers’ plan which has the distinction of being unacceptable to just about everyone with an opinion. However leaving the EU without a deal is looking increasingly attractive to voters – they are in no mood to hand over £39bn to the EU simply in order to maintain the status quo. The current rumour that she will fly to Brussels tonight to beg for more time to agree a deal will do nothing to ease Sterling’s uncertainty, nor encourage Brussels to take her seriously. One could hardly imagine the late Margaret Thatcher undertaking such a humiliating journey.  A change of leadership is somewhat overdue and the failure of Parliamentarians to seize the moment will haunt them for years to come. We’d be unwinding short-term Long positions on any rally until some clarity emerges from the gloom.

Share this news

Related posts

Economic 2019-07-31_FOMC.png

Countdown to FOMC on 31st of July

31/07/2019

Market expects 0.25% rate cut on 31st of July 2019

Read more
Calendar Calendar.jpg (1)

The week ahead 15.07.2019

15/07/2019

Upcoming releases next week

Read more
Stock Market US stock-exchange.jpg

Stock market rally

10/07/2019

Stock market rally after Powell transcript

Read more
Forex News yen.jpg

Dollar Yen breaks lower

24/05/2019

Dollar Yen breaks lower

Read more