Market News & Analysis

Top Story

Pound tumbles on political uncertainty

Sterling extended losses on Thursday, which now total 1.5% across the week. Add these losses to the previous week’s 1.3% tumble and the pound is looking very unloved. 

Theresa May will attempt to push her Brexit deal through Parliament at the beginning of June. With Labour refusing to support the deal in its current state, the chances of Theresa May achieving her goal are extremely slim. Should she fail for a fourth time to get the necessary support for her Brexit withdrawal agreement, then it looks as if her time is up. June 15th is being circulated as a potential exit date.

The concern for the pound is who comes next? A hard-line Brexiteer is the most probable candidate, meaning hopes of a softer version of Brexit are fading quickly. It is no coincidence that the pound fell as Boris Johnson announced that he was ready to pounce into Theresa May’s position should it become available.

The pound broken through support at $1.2830 earlier today and is looking to test support at $1.2775. A meaningful break through this level could see the pound extend losses towards $1.2670. On the upside resistance can be seen at $1.2870 before $1.2925.


Disclaimer

This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.

GAIN Capital Singapore Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the GAIN Capital group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), GAIN Capital Singapore Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact GAIN Capital Singapore Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.

In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither GAIN Capital Singapore Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.

GAIN Capital Singapore Pte. Ltd. is not under any obligation to update this report.

Trading CFDs and FX on margin carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit cityindex.com.sg for the complete Risk Disclosure Statement.

Important Notice:

Cryptocurrencies are not legal tender currency and trading of derivatives on Cryptocurrencies are currently not covered under any regulatory regime in Singapore. Consequently, investors should be aware they do not have protection under the Securities and Futures Act (Cap. 289). Please ensure that you are fully aware of the risks.