The Pound ran into political problems, as the Brexit has stumbled into a disagreement between Northern Ireland politicians who are part of the U.K governing coalition. The Pound remains highly valued, but with plenty of questions shadowing it in the short-term.
Brexit Negotiations Run into Problems
As the Brexit negotiations prove difficult again, the short-term dynamics of the Pound took a wicked turn late on Monday. The Pound is still above the 1.34 level against the U.S Dollar, but trading the British currency today will need a brave heart.
Northern Ireland politicians have said they will not agree to a Brexit deal unless they get concessions, and it has caused chaos for the Pound in the short-term.
Pound Still Testing High-Water Marks
From a mid-term perspective, the Pound remains near its high-water marks. And patient traders may be tempted to think the Brexit negotiations with the Northern Ireland politicians will eventually work out.
However, a quick deal may not be possible, and this could cause volatility for the Pound.
Tough Political Questions Ahead for Traders
Traders have a tough political question to ask themselves about their level of optimism regarding Prime Minister May’s ability to get a deal done within her U.K coalition government.
If May scores an eventual deal with her Northern Ireland counterparts, and maintains her power and wins a Brexit deal that will certainly help the Pound, but in the near-term concerns remain.
In the short term, we believe the Pound may be negative. In the mid-term and long-term, we are unbiased.
Yaron Mazor is a senior analyst at SuperTraderTV.
SuperTraderTV Academy is a leader in investing and stock trading education. Sign up for a class today to learn proven strategies on how to trade smarter.
This article was originally posted on FX Empire
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