Brexit: Second Referendum, Plan B
Faraday Research | Jan 18, 2019 04:02PM ET
Much like a rollercoaster ride, this week’s Brexit developments have been full of twists and turns…but have ultimately taken us right back to where we started the week. PM May’s Brexit deal was roundly rejected on Tuesday, but the Prime Minister subsequently won Wednesday’s no confidence vote. As we head into this weekend, May is once again headed to Brussels to try to forge an agreement that will be acceptable to both the EU and Parliament.
The Prime Minister continues to rule out a second referendum on the issue, though betting markets are more open to the idea; according to Bloomberg data, traders now see the odds of another vote at 42% while the implied probability of a no-deal Brexit has fallen below 12%.
For FX traders, the (perceived) drop in the likelihood of a hard Brexit are a bullish sign for the pound. GBP/USD is poised to finish higher on the week (notwithstanding Tuesday’s intraday swoon) and see its highest weekly close in over two months.
With Theresa May set to reveal her “Plan B” proposal on Monday and a vote scheduled for January 29, traders look likely to take another ride on the Brexit rollercoaster next week…the only question is whether we’ll fall off the rails at some point!
Source: TradingView, FOREX.com
Cheers
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.