The biggest move in currency markets over the weekend, and this morning as Asia wakes up, is Pound Sterling gapping down nearly 200 pips against USD:
And on the crosses, particularly against the Australian dollar:
This has been a swift reversal from a recent surge in the once-favoured currency, but watching this as part of its secular decline, it is no surprise:
A new thirty year low – and all because of the upcoming speech from the UK PM Theresa May on Tuesday that has been reported on over the weekend as a hardening of the “hard” Brexit line her government will take. From the Sunday Telegraph here:
- be prepared to leave the customs union to secure free trade deals across the world
- regain full control of its borders even if that means ending single market membership
- no longer be bound by European Court of Justice rulings after Brexit, despite claims to the contrary
- unite after the “division” of the referendum by ditching the terms “Leaver” and “Remainer”
And of course, his Trumpency has to add his two cents worth, stating in an interview over the weekend (as well as dissing NATO as useless) that Brexit will “end up being a great thing”. Trump wants to do a trade deal with the UK as soon as possible and is encouraging more countries to leave the European Union.
Let’s make volatility Great again! This is going to be a great one to four years (depending on how long Trump lasts) for traders and swift investors.