Weight Off the Pound’s Shoulders | Trade Ideas | Real Vision

TL;DR

Trade idea to take advantage of the potential revival of the British Pound since Brexit, mainly focusing on the euro.

Transcript

okay so what's your trade idea today we're gonna try and take advantage what I think is a coming revival in the British pound since brexit but even before this the breakfast vote in 2016 the British Pound has been out of favour with almost any cross or any trading pair I think we're about do one now that we're approaching the end we hope of the bre... Read More

Key Insights

• 🇮🇴 The Brexit vote in 2016 caused the British Pound to suffer due to fear of the unknown and concerns about the British economy.
• ☄️ The economic issues predicted after Brexit haven't come to fruition, and the British stock market has performed well.
• 😄 As the Brexit negotiations approach a conclusion, the pressure on the Pound is expected to ease, potentially leading to a revival.
• 🏤 Focusing on the Pound in trading could be a favorable strategy, particularly against the euro.
• 😨 The fear and drama surrounding the Brexit negotiations have overshadowed the actual economic impact on the Pound.
• 🍃 The uncertainty of Britain leaving the EU was an unprecedented event, causing significant market volatility.
• 😨 The fear of dislocation in the British economy was due to the potential impact on trade relationships, particularly with the EU.

Questions & Answers

Q: Has the British Pound suffered more compared to the euro?

Yes, the British Pound has been significantly affected, primarily due to the fear of the unknown surrounding Brexit. The depreciation of the British Pound has been more pronounced compared to the euro.

Q: Why did fear of the unknown drive down the value of the British Pound?

The uncertainty surrounding Brexit and its potential impact on the British economy led investors to become cautious. They feared the consequences of Britain leaving the EU, resulting in a devaluation of the Pound.

Q: Have the economic issues predicted post-Brexit come to pass?

No, contrary to expectations, the anticipated problems in the British economy haven't materialized yet. The stock market is doing well, and the economic concerns haven't significantly impacted the British Pound.

Q: What factors contribute to the potential revival of the British Pound?

As the Brexit negotiations near their end, the likelihood of a deal being reached becomes clearer. This reduces the fear and uncertainty surrounding the Pound, potentially leading to its revival.

Summary & Key Takeaways

• The British Pound has been out of favor since the Brexit vote in 2016.

• The fear of the unknown and potential dislocation for the British economy drove down the Pound's value.

• However, the concerns about the British economy haven't fully materialized, and as the Brexit negotiations reach a conclusion, there is potential for a revival in the Pound.