ActivTrades’ Market Analysts have prepared for LeapRate their daily commentary on traditional markets for December 18, 2019. This is not a trading advice. See details below:
FOREX/BREXIT
The pound continues to fall and has cancelled out the post-election gains, as markets price in fresh risks of a no-deal Brexit. Many investors expected a more constructive stance in relation to the future relationship with the European Union from the British Prime Minister after his convincing win with a comfortable majority at last week’s election.
However Boris Johnson is so far disappointing those that expected a smooth ride. His intention to limit the transition period that will follow the exit of the UK from the European Union revives the risk of no deal at the end of 2020 and this is why sterling is falling. The re-elected prime minister is adopting a more hard-line stance than many expected and there may be further downside risk ahead for the pound.
Ricardo Evangelista – Senior Analyst, ActivTrades