Peter A Rosenstreich
Swissquote Bank Ltd
Not much is moving in markets today. Drivers have been on repeat for so long investors are suffering from boredom. FX volatility has declined significantly of the past week but GBP volatility remains least effected. Cleary the lower pace fall is due to critical political premiums still relevant. PM May has requested that Brexit would be official postponed to 30th June from 29th March. This offer is again dependent on UK Parliament approving a Brexit withdrawal agreement next week. This should increase the likelihood that UK Parliaments approved a deal in its third attempt.
Stay on top of the markets with Swissquote’s News & Analysis
It important to note in our view that European policymakers would like to dodge an economically catastrophic “hard” exit. In addition, the extra time gives “remainer” time develop a new strategy. By breaking the hard deadline, the rational that other absolutes are flexible becomes material. With over 2 million people signing an online petition to cancel Brexit the possibly of “No Brexit” has increase significantly. The pace of signatures surged after May statement on Thursday. Interestingly the petition is only focused to “Revoke Article 50 and remain in the EU” and remains well meaningfully number in reality. However, it might be just enough to convince political to put the decision to the people. Finally, figures from the poll indicates that signatories were not only from the UK. We remain skeptical on long GBP bet despite the supportive development. We should see fall in volatility as an opportunity to reload long vol positions. The Brexit chaos is far from over.
This report has been prepared by Swissquote Bank Ltd and is solely been published for informational purposes and is not to be construed as a solicitation or an offer to buy or sell any currency or any other financial instrument. Views expressed in this report may be subject to change without prior notice and may differ or be contrary to opinions expressed by Swissquote Bank Ltd personnel at any given time. Swissquote Bank Ltd is under no obligation to update or keep current the information herein, the report should not be regarded by recipients as a substitute for the exercise of their own judgment.
Recommended Content
Editors’ Picks
AUD/USD posts gain, yet dive below 0.6500 amid Aussie CPI, ahead of US GDP
The Aussie Dollar finished Wednesday’s session with decent gains of 0.15% against the US Dollar, yet it retreated from weekly highs of 0.6529, which it hit after a hotter-than-expected inflation report. As the Asian session begins, the AUD/USD trades around 0.6495.
USD/JPY finds its highest bids since 1990, approaches 156.00
USD/JPY broke into its highest chart territory since June of 1990 on Wednesday, peaking near 155.40 for the first time in 34 years as the Japanese Yen continues to tumble across the broad FX market.
Gold stays firm amid higher US yields as traders await US GDP data
Gold recovers from recent losses, buoyed by market interest despite a stronger US Dollar and higher US Treasury yields. De-escalation of Middle East tensions contributed to increased market stability, denting the appetite for Gold buying.
Ethereum suffers slight pullback, Hong Kong spot ETH ETFs to begin trading on April 30
Ethereum suffered a brief decline on Wednesday afternoon despite increased accumulation from whales. This follows Ethereum restaking protocol Renzo restaked ETH crashing from its 1:1 peg with ETH and increased activities surrounding spot Ethereum ETFs.
Dow Jones Industrial Average hesitates on Wednesday as markets wait for key US data
The DJIA stumbled on Wednesday, falling from recent highs near 38,550.00 as investors ease off of Tuesday’s risk appetite. The index recovered as US data continues to vex financial markets that remain overwhelmingly focused on rate cuts from the US Fed.