The British pound continues to rise even though Theresa May’s chief Brexit negotiator David Davis has resigned. The euro sceptics in her cabinet are not happy with what they see as a “weak” Brexit plan that she is pushing.
Is Boris Johnston next to go, or will Brexit bring down Theresa May?
You would expect that this political calamity would hit sterling hard but that has not been the case, so far. Sterling continues to rise and moved up about 50 pips in early trading on Monday, post Davis resignation.
Understanding the push and pull of currencies is never clear cut.
The Brexit calamity is seen as a negative, however buyer are giving more weight to a weak dollar due to Trump’s ongoing trade wars (positive for GBPUSD) and an expectation that the Bank of England will increase interest rates in August (also, positive for GBPUSD).
Sometimes, when we have a big pull and push on either side of a currency pair it’s best to just follow the price or give that pair a wide berth until its starts making sense.
More resignation in May’s cabinet over the next few days could be the trigger for the buyers to give up.
Join us for our next live webinar on the 17th July by registering below.
|9.7.2018||Sterling Ignores Brexit Calamity|
|25.6.2018||Oil surges on OPEC decision|
|18.6.2018||Draghi Kills the Euro!|
|11.6.2018||The Rand Weakens Against the US Dollar|
|4.6.2018||EURUSD clips 1.150, where to next?|
|28.5.2018||Oil Prices Plunge|
|21.5.2018||The EURUSD Continues to Fall Further|
|14.5.2018||The S&P 500 Rises on Iran and Fed Statement|
|7.5.2018||Is the EURUSD pair heading towards 1.1550?|
|30.4.2018||Sterling Gets Hammered Again|
|23.4.2018||Sterling Gets Crushed on Weak UK Data|
|16.4.2018||Is Oil Heading for $80?|
|9.4.2018||The NFP Aftermath - GBPUSD Reins Supreme|
|26.3.2018||Trade of the Week – USDJPY|
|19.3.2018||Trade of the Week – Crude Oil|
|12.3.2018||Trade of the Week – Ethereum|
|5.3.2018||Trade of the Week – The Dow Jones|
|27.2.2018||Trade of the Week – GOLD|
|19.2.2018||Trade of the Week – USDJPY|
|12.2.2018||Trade of the Week – Crude Oil|
|5.2.2018||Trade of the Week – Sell the Dow Jones|
|29.1.2018||Trade of the Week – EURUSD|
|22.1.2018||Trade of the Week – GBPUSD|
|16.1.2018||GBPUSD surges by over 200 pips on Friday|
CM Trading is the Brand name of Global Capital Markets Trading
The website is operated by CMT Processing Limited.
HIGH RISK WARNING:
Trading Foreign Exchange (Forex) and Contracts for Differences (CFD’s) is highly speculative, carries a high level of risk and may not be suitable for all investors. You may sustain a loss of some or all of your invested capital, therefore, you should not speculate with capital that you cannot afford to lose. You should be aware of all the risks associated with trading on margin.
© Copyright 2015 - CM Trading - All rights reserved