How to Trade the Brexit Extension

TL;DR

The EU and UK have agreed to extend the Brexit deadline until October 31st, allowing more time for a potential deal to be made.

Transcript

hi guys first a 11th of April just gone half 12 here in London just as a quick summary I'm sure you've all heard but the brexit extension is now being granted until October the 31st Halloween so the EU is along with the UK agreed for an extension flexible extension the deal can be done beforehand but at the moment the deadline is the 31st whether t... Read More

Key Insights

• 👻 The Brexit extension allows for more time to negotiate a potential deal between the UK and EU.
• 🏤 The pound and euro have not experienced significant fluctuations after the extension, as the market had already anticipated this outcome.
• 🛄 Economic indicators from the US, such as initial jobless claims and PPI final demand numbers, could impact market prices.
• 🥺 Equities are facing resistance at 2900, and a break above this level could lead to a significant upward movement.
• 😘 Oil prices are showing signs of potentially finding a top around the previous year's lows.
• 🤩 Key levels for oil include the resistance at 6570 and the previous lows from October 23rd and 29th.
• 🛢️ The overall outlook for oil is unclear, and further market developments will need to be considered.

Questions & Answers

Q: What is the new Brexit deadline?

The new Brexit deadline is October 31st, providing an extended timeline for negotiations between the UK and EU.

Q: Are there any economic indicators to watch out for in the US?

Yes, later in the day, the US will release initial jobless claims and PPI final demand numbers, which could impact market prices.

Q: How have the pound and euro currencies reacted to the Brexit extension?

Both currencies have remained stable, as the news of avoiding a no-deal Brexit had already been factored into the market.

Q: What are the potential implications of breaking the resistance level at 2900 for equities?

Breaking the resistance level at 2900 for equities could lead to a stop run and potentially push the market towards all-time highs.

Summary & Key Takeaways

• The Brexit extension has been granted until October 31st, with the possibility of a deal being made before the deadline.

• Initial jobless claims and PPI final demand numbers are expected from the US later in the day.

• The pound and euro have remained relatively stable, with the positive news of avoiding a no-deal Brexit already priced into the market.