Markets Holding Up After Brexit Fallout
Rowan Crosby • 1 min read
There was an air of expectation that markets would possibly nose-dive in early Asian trade after yet another failed Brexit attempt.
Markets were hopeful last week, with the UK and EU struck a deal, but once again it was the UK Parliament that shot everything down.
That means we could still be looking at some downside, but so far we haven’t seen too many big moves in early Asian trade.
The key focus has of course been on the GBP/USD. It is down today but only by -0.5%.
The Aussie has been very bullish of recent times, spurred on by the fact that the jobs situation has improved.
While the Kiwi has also been pushing higher. It got hit hard when it pulled off a double interest rate cut, but since that time, the inflation situation has improved and that has been helping to stabilise the RBNZ.
GOLD is always one to watch and so far it is flat to open the trading week.
Perhaps, the whole Brexit situation is starting to be a bit of a ‘boy who cried wolf’ type situation. Where the rest of the world is a little tired of headlines and the fact that the UK PArliament can’t work anything out.
PM Johnson still believes he can get something done by months end, so perhaps we need to wait on that which could spur a big risk on trade.
At the moment, the Pound is proving to be a tricky trade in some regards as it is simply at the mercy of the PArliament, which as we have seen is enough to destroy a PM’s career, let alone a traders account.