Flash Crash And Brexit Fallout Continues

Flash Crash And Brexit Fallout Continues

Flash Crash And Brexit Fallout Continues

Nordea wrote a note in which it argues that what happens in the Danish trade figures is a preface to the broader Brexit effect. Danish exports to the UK fell 9% in the period June-August and there is little to expect an improvement soon.

To set a benchmark, the overall value of Danish exports to the whole EU dropped 3% in the same period.

Nordea analysts claim that the deterioration in the trade with UK should be attributed to the GBP performance since the Brexit vote. We present you what happened to GBP year-to-date, as the Brexit fears started to affect the pound much earlier.

 

How much the pound lost to other G-10 currencies since the start of the year; Source: Bloomberg

The numbers below suggest that the depreciation is truly high enough to cause major distortions in trade patterns – but this should be only good news for British exporters – and this is confirmed in September PMI reports. It may pay to watch EU’s trade numbers from this point of view, but the recent good figures from Eurozone real economy and a rebound in business sentiment may hide this trade story for now.

 

The pound is not trying to re-visit the levels seen during the flash crash. If we will see more evidence that the negative sentiment on GBP is waning it could still be possible to re-launch our trade idea based on the assumption of further positive dataflow from the UK, described in our currency report on GBP. The first attempt hit a stop loss during the highly surprisingly flash crash. We will watch the pound’s behavior after the next data point we indicated in the report – the retail sales proxy coming this night. 

 

 

Start your Trading Account Here

and Get a 100$ Bonus! 

 

 

Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn
Share on whatsapp
WhatsApp
Share on email
Email

Recent .

Stock of the Week: Apple in huge demand, beats estimates by billions.

Stock of the Week: Apple in huge demand, beats estimates by billions. Apple beat estimates for quarterly earnings by billions of dollars. We look at …

Read More →
Stock of the week: Facebook makes CEO Mark Zuckerberg $8 billion in just one week!  

Stock of the week: Facebook makes CEO Mark Zuckerberg $8 billion in just one week!   It has been a momentous week for Facebook CEO Mark Zuckerberg who …

Read More →
Big Tech earnings roll in – Huge profits for Google, Microsoft and more! 

Huge profits for Google, Microsoft and more! Major big tech companies have released their quarterly earnings. We look at how some of the world’s biggest businesses performed so far this year!     Google, …

Read More →
MetaTrader 4 vs MetaTrader 5 – which is the better platform?
Bitcoin bounces back: Is buying the dip worth the risk?

Bitcoin bounces back: Is buying the dip worth the risk?  Bitcoin has recovered some of its losses following its fall from a record high of $65,000. Considering the crypto king’s astonishing performance in 2021, should …

Read More →
Oil summit: Waste of time
Oil market outlook: bumpy ride ahead?

2020 has been disastrous for the oil markets, however, it appears that oil has recovered most of its losses and is now hovering near pre-pandemic levels. In today’s article we will take a look at oil’s recent performance and explore the opportunities that may lie ahead.

Read More →
Dollar still on ten month lows while AUD gains
Stock Market Forecast: S&P 500, Dow Jones, NASDAQ Predictions and Analysis for 2021

With 2021 just around the corner, financial analysts are offering their outlook on where the stock market is headed in the coming year — and many of these experts are hoping for a bullish outcome. Read on.

Read More →
˄