Daily Alert – Wednesday 21st October 2020: GBP rises as Brexit talks resume

Mark NugentDaily Alert, Oct 2020

Daily Alert – Wednesday 21st October 2020: GBP rises as Brexit talks resume

The stalled Brexit talks look ready to restart after EU negotiator Barnier addressed UK concerns that the EU was not taking the UK’s sovereign status seriously. The GBP rose significantly. The latest goal is to reach an agreement by November. That’s probably code for “31st December, 5 minutes to midnight”.

I entered EURAUD long on Monday night on a strong EUR. I closed half the trade on Tuesday night as there was some selling pressure. I closed the remainder today as the EUR had turned bearish. I made +1.96% on a risk of 1%. Not a great trade and I could have managed it better, but still, almost 2% in a week is not bad, especially when you can do it routinely, as we can.

The major risk event facing us now is the US Presidential Debate which is early tomorrow morning UK time. It should be fiery as Trump will certainly bring up Middle East foreign policy for which he feels under-appreciated and also the vulgarly named although as yet-to-be refuted #BidenCrimeFamily crazyness. With Wall Street having warmed to a Biden victory, anything that upsets that expectation will move the markets.

I’ll be back on Friday with a review of the week and a brief video on the EURAUD trade.

You can watch the video in the VIP Club members area HERE