The British prime minister is fighting hard to move the Brexit negotiations forward. But even she can not reconcile the warring parties within the government. Now, both EU and UK are warning everyone that a ‘no deal’ Brexit has become a distinct possibility.
Mirroring this breakdown, the GBPEUR broke south of its long-running trading range to trade at its weakest level since March. Investors are not liking this ‘no deal’ scenario and are switching out Sterling. Will the support at 1.115 hold? I doubt so – unless both parties pull back from brink.
Coupled with disappointing UK macro headlines, the risk here is a further decline into the August ’17 level below 1.10.
Jackson has over 10 years experience as a financial analyst. Previously a director of Stockcube Research as head of Investors Intelligence providing market timing advice and research to some of the world largest institutions and hedge funds.
Expertise: Global macroeconomic investment strategy, statistical backtesting, asset allocation, and cross-asset research.
Jackson has a PhD in Finance from Durham University.