News that a Brexit deal has been agreed sent the pound surging. The pound looks to target $1.30 at time of writing, although there could well be more wind in the sails, with a move towards $1.34 not inconceivable.
The volatility in the pound and the UK markets won’t stop here. This is just half the battle. Traders will now turn their attention to the chances of Boris Johnson’s Brexit deal making it through Parliament.
Levels to watch:
The FTSE rebounded off a low of 7147 on the news that a Brexit deal has been agreed. The UK index is currently up 0.6% at 7210 but still remains below its 100 & 200 sma. A break above 7250 could indicate a more bullish outlook. On the downside, support can be seen at 7150 prior to 7110.
StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.