According to Mark McCormick, global head of FX strategy at TD Securities, Brexit news has dominated headlines, as the UK/EU have reached a deal. Key Quotes “Sentiment has trumped fundamentals, reflecting the fact that GBP now sits 2.5-sigmas from HFFV. Still, we note that there’s a major rub to this deal, as it needs to pass the UK parliament Saturday. That’s unlikely and the result of a failed agreement brings us back to the prospects of a general election later this year.” “Still, one of the major developments has been the reduction of no-deal tail risk. That’s part of the reason GBP has decoupled from short-term drivers. Our suite of LFFV models implies an 11% discount in GBP, highlighting a Brexit premium that is likely to get priced out if we start to get closure on the three-year saga.” “For the rest of the G10, the market prefers to run with the weak USD theme. As we noted yesterday, we see some nice discounts on offer in the antipodes and the scandis. This group looks attractive against CAD ahead of next week’s election. USDJPY rallies look capped ahead of the 200dma while the UK Parliament vote to decide the fate of the EUR over the coming days.” FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next EUR/USD rejected from the 100-day SMA near 1.1140 FX Street 4 years According to Mark McCormick, global head of FX strategy at TD Securities, Brexit news has dominated headlines, as the UK/EU have reached a deal. Key Quotes "Sentiment has trumped fundamentals, reflecting the fact that GBP now sits 2.5-sigmas from HFFV. Still, we note that there's a major rub to this deal, as it needs to pass the UK parliament Saturday. That's unlikely and the result of a failed agreement brings us back to the prospects of a general election later this year." "Still, one of the major developments has been the reduction of no-deal tail risk. That's part of the… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.
