Traders and Fund managers alike are expected to be glued to their desk on Tuesday evening UK time as the British parliament vote on the Brexit Deal put before them.
Even though a majority of the market predict that the deal will be voted down, in recent day’s UK Prime Minister Theresa may has gain support of her deal from previously skeptical colleagues which means that the deal still has a chance of passing.
With all this in mind it is a day not to be missed by currency traders looking for one of the more volatile days in recent times.
“That’s one of the SNB lessons learned, there were a lot of less experienced people on the desk,” said Alan Schwarz, New Jersey-based CEO of FXSpot Stream LLC, a trading venue launched by banks. “I will guarantee you a lot of the most senior people at the banks will be at their desk or will be able to get to it.”
The pound could rally more than10c if the bill unexpectedly passes while if it fails by a huge majority of votes the chances of the currency diving below $1.20 are areal possibility.
In any case this is day is seen as an important milestone for the British pound.
“The vote could be construed as more important than an election in terms of pound implications,” said Neil Jones, head of currency hedge fund sales at Mizuho. “Depending on the outcome, cable could move more than through an election result.”
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 61% of retail investor accounts lose money when trading CFDs with this broker. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Risk warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 61% of retail investor accounts lose money when trading CFDs with this broker. Before deciding to trade foreign exchange you should consider whether you understand how CFDs work, your investment objectives, your level of experience and readiness of taking risk. The possibility exists that you could sustain a loss of some or of all of your initial investments and therefore you should not risk more than you are prepared to lose. Please seek independent financial advice if necessary.
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