Unnoticed Brexit talks

In the shadow of the corona virus, EU massive intervention, and upcoming US presidential election many traders almost forget about “Brexit” unfinished saga.

Brexit talks are almost unnoticed at the moment
Source: Unsplash Author: Habib Ayoade

Britain is officially out of the EU, but the negotiations about further trade agreements are going on. Or at least they should be. With corona spread, everything was put aside, including “EU – Britain” trade agreement talks.

There are numerous signs that the current temporary period (when everything is as it was when Britain was in the EU) will not be prolonged. That means we are just weeks before the final agreement has to be reached.

The end of August or September is the latest date when the announcement of the future trade relationships between the EU and Britain should be made. Otherwise, we will get “HARD” Brexit. And the truth is, that Johnson’s administration will be ok with no agreement at all.

That leads me to an idea to consider building a leveraged position against GBP (in a big way) and EUR (in a smaller way) with USD as the main beneficient (the presidential elections are a bit obstacle).

Investment Idea:
Short GBP versus EUR and USD (2:1 in favor of USD)

Current Rates [as of 07-22-2020, 09:44 ET]:
GBP/USD 1.2700
EUR/USD 1.1585
EUR/GBP 0.9122

We use WALLMINE for tracking the markets.

You understand that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person. You further understand that none of the bloggers, information providers, app providers, or their affiliates are advising you personally concerning the nature, potential, value or suitability of any particular security, portfolio of securities, transaction, investment strategy or other matter. To the extent that any of the content published on the Site may be deemed to be investment advice or recommendations in connection with a particular security, such information is impersonal and not tailored to the investment needs of any specific person. You understand that an investment in any security is subject to a number of risks, and that discussions of any security published on the Site will not contain a list or description of relevant risk factors. In addition, please note that some of the stocks about which content is published on the Site have a low market capitalization and/or insufficient public float. Such stocks are subject to more risk than stocks of larger companies, including greater volatility, lower liquidity and less publicly available information. Blogs, postings or content on the Site which may or may not be deemed by you to be recommendations may have an effect on their stock prices.

The Site is not intended to provide tax, legal, insurance or investment advice, and nothing on the Site should be construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any security by us or any third party. You alone are solely responsible for determining whether any investment, security or strategy, or any other product or service, is appropriate or suitable for you based on your investment objectives and personal and financial situation. You should consult an attorney or tax professional regarding your specific legal or tax situation.

Leave a Reply