Scoxit Today, Brexit Tomorrow, The Buck Rides Them All - Forex News by FX Leaders

Scoxit Today, Brexit Tomorrow, The Buck Rides Them All

Posted Tuesday, March 28, 2017 by
Skerdian Meta • 2 min read

The Scottish parliament passed a vote a while ago 69/59 in favour of another Scottish referendum. We had one a couple of years back where the Scots voted to stay within the UK.

At that time, anyone could feel that the Scottish people would vote in. Now, I´m afraid to say that I have this strong feeling that the Scots will vote to leave the UK for the EU. Remember that about 60% of Scotland voted to remain in the EU, but the vote of England threw them off, obviously.

But, the UK government will have to approve the referendum and they took no time to issue a statement saying that there will be no negotiations at this time, not before the final Brexit deal is reached with the EU.

“It would be unfair to the Scots to make them take such an important decision without the right information about the future risk the UK faces in relation with the EU”, that´s more or less what the statement said.

It´s damn ironic coming less than a year after the Brexit referendum, which very similar. But, the UK government has the final say. I´m not sure what Scotland´s first minister Sturgeon can do next, but it looks like we´ll see another Scottish referendum by 2020 the latest.

No wonder the GBP is falling; the decline is getting close to 200 pips as I speak. I hope we haven´t missed the chance to open a long term sell forex signal. This might as well be some profit taking of some long positions from a couple of weeks back when this forex pair was around the 1.21 level.

If you feel the urge to go long on GBP/USD, you better wait until we reach the purple or red moving average

But, all the other major currencies are also falling. EUR/USD is down to 1.08 and USD/JPY is above 111, so this has turned into a broad USD buying spree.

It´s not a run for safety because the Yen and the Swiss Franc are among the biggest losers, but at least our EUR/CHF signal is getting close to the take profit target. Keep an eye on that signal because we might close it manually.

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About the author

Skerdian Meta // Lead Analyst
Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.
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