Trader's Brexit Analysis | Summary and Q&A

TL;DR

Parliament votes on alternative measures to Theresa May's plan, causing uncertainty and potential fluctuation in the value of the pound.

Key Insights

• 💷 The uncertainty surrounding Brexit and the outcome of indicative votes continues to impact the value of the pound.
• 🥺 The lack of a clear consensus from Parliament has led to market instability and fluctuations in the pound's value.
• 🙈 Indicative votes are seen as a positive for the pound, particularly those indicating a preference against a no-deal Brexit.
• 🧘 Technical analysis suggests potential trading opportunities with long positions around the mid to low 129s and short positions around the 134 area.
• ❓ The outcome of these votes can still be influenced by legal and practical considerations.
• 🤝 The possibility of a second referendum or a different deal being presented to the people adds further uncertainty to the situation.
• ™️ Overall, it is important for traders to keep their trades tight and closely monitor the developments surrounding indicative votes.

Transcript

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Questions & Answers

Q: What are indicative votes in relation to Brexit?

Indicative votes are when Parliament votes on various measures as alternatives to Theresa May's Brexit plan, in an attempt to find a consensus.

Q: Why did the pound suffer after the previous round of indicative votes?

The lack of conclusive results from the previous round of votes created uncertainty, leading to a drop in the pound's value.

Q: What is the deadline for getting the indicative votes passed?

The deadline is April 12th for these indicative votes to be passed or any other alternatives to be decided upon.

Q: Why did Parliament not choose to extend the deadline to May 22nd?

Parliament did not choose to extend the deadline because they voted down the withdrawal agreement portion of Theresa May's deal, which still needs to be passed regardless of other measures chosen.

Summary & Key Takeaways

• Parliament is having another round of indicative votes to find consensus on alternative measures to Theresa May's plan for Brexit.

• Last week's votes did not produce conclusive results and resulted in a drop in the value of the pound.

• The potential outcomes of these votes could range from a softer Brexit to no Brexit at all.