Trading GBP after historic Brexit vote defeat

GBP Sterling Pound Source: Bloomberg

The futile gesture has been made, and the result is as expected. The fact that the pound has managed to hold its ground against the euro and the dollar shows what a foregone conclusion this was. It is odd, at this moment of national crisis, to see Parliament locked in stasis and the UK unable to see the way forward. Parliament isn’t giving way, the EU isn’t giving way, and nor, it seems is the Prime Minister.

It still looks as if ‘no deal’ is the least-likely option, and on this basis markets are happy to take a more optimistic view, although anything could still happen. But if the UK is going to exit it all, it now looks to be on the softest possible terms, something that will please investors and may even make UK assets a lot more attractive. But there is a lot of uncertainty to be removed first, and even a delay to Brexit until later in the year does not change this.

EUR/GBP continues to decline, and we should see this recover slightly tomorrow but the overall trend is down, and the drop through 89.50p seems to suggest that the way is clear to move back towards the lows of November, at 86.50p.

EURGBP

EURGBP

Against the dollar, the weighty rebound today puts the pound back on the front foot, and should see $1.30 challenged in due course. But this could be a volatile trip, and we should likely see further opportunities to buy the dip along the way.

USDGBP

USDGBP


IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

This information/research prepared by IGA or IGA Group is intended for general circulation. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person. You should take into account your specific investment objectives, financial situation or particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. In addition to the disclaimer above, the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.

Please see important Research Disclaimer.

Trading around Brexit

Find out how the UK’s exit from the EU continues to affect traders, and discover:

  • The unique opportunities in a ‘hard’ and ‘soft’ Brexit
  • The markets you should be watching
  • Everything that’s happened so far

Live prices on most popular markets

  • Forex
  • Shares
  • Indices
Bid
Offer
Updated
Change
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Bid
Offer
Updated
Change

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Bid
Offer
Updated
Change
-
-
-
-
-
-
-
-
-
-
-
-
China 300
-
-
-
-

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.

The Momentum Report

Get the week’s momentum report sent directly to your inbox every Monday for FREE. The Week Ahead gives you a full calendar of upcoming key events to monitor in the coming week, as well as commentary and insight from our expert analysts on the major indices to watch.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.