Brexit – Are we on the cusp of a deal?
GBP/EUR remains dominated by Brexit developments. 1.15 has been a resistance point for 18 months and seems to be still holding despite yesterday’s positive news. The reason for the spike in pound value is due to the speculation that a Brexit deal could be imminent. There is a cabinet meeting at 2pm where Theresa May is expected to outline a draft agreement for Brexit, If approved without any resignations there is the distinct possibility of an EU summit late in November.(23rd-25th is rumoured)
The view is that this will result in a formal deal between Westminster and Brussels. If this does occur expect Sterling to rally.
Do not think a deal is now a foregone conclusion, the deal is far from agreed and it is also important to remember that the deal will also have to be voted through by the cabinet in December/January which will be no easy task. With so much in house fighting and Boris’ thinly veiled ruse to oust Theresa May this could well be a stumbling point.
The market continues to sit around 1.15 despite this news, the markets don’t lie and investors are not convinced the deal is done. Every time 1.15 is breached the market retracts. If you have a requirement buying Euros you are currently at the peak of the market. I would consider doing a tranche of my trade at current levels for safety. Euro sellers trade now. Pre-Brexit GBP/EUR was 1.42, selling at 1.15 is still well below the historical average. I think weighing up risk vs reward I would take advantage of current levels.
If you have a currency requirement I will be happy to assist. It is crucial to be in touch with an experienced broker when the market is currently so hard to predict. If you let me know the details of your trade I will endeavour to produce a free trading strategy to suit your individual needs. Have faith knowing you will be dealing with a brokerage in business for over 16yrs, Foreign Currency Direct Plc. We are a no risk entity as we do not speculate on the market and we are registered with the FCA. If you have a currency provider take a minute to send over the rates they offer and I am confident I can demonstrate a significant saving. I can be contacted at firstname.lastname@example.org . (Daniel Johnson) Thank you for reading.