The run-up to the 2019 UK general election has begun!
Start trading the biggest market event of the year
What are the instruments to look out for?
GBPUSD has bottomed at 1.20 zone following strong fall after the 2016 Brexit referendum vote, recovery attempt in 2017/18 which stalled at 1.43 zone and subsequent weakness that repeatedly found solid supports at 1.20 area. Recovery rally in the second half of 2019 cracked significant resistances at 1.30 in days preceding the UK election. The pound was very volatile in a turbulent three years after the divorce between the UK and the EU has been voted.
The British pound was significantly weaker against its European counterpart in months after the 2016 Brexit vote but managed to stabilize and stay within a larger range through 2017/18 and the first half of 2019. The cross lost ground and holds in a steep downtrend in the past few months, as the pound’s sentiment improved on expectations that Brexit with the agreement, will be reached by the end of the year.
FTSE100 has rallied after Brexit vote and maintained strong bullish tone through the second half of 2016 and 2017, with the uptrend being interrupted in early 2018 before fresh strength resulted in hitting historical highs. In 2018, the index followed sterling and declined, but managed to recover through the first half of 2019. The FTSE100 again diverged from sterling in the second half of the year and holding in red in days ahead of the election.
Gold reacted positively to risk aversion after Brexit vote in 2016 but remained within a wider range during 2017/18. The yellow metal to a new multi-year high in the second half of 2019, driven by other global key factors.