- Analytics
- News and Tools
- Market News
- Sell Eur & Gbp rallies - BofA Merrill
Sell Eur & Gbp rallies - BofA Merrill
"Following the sharp sell-off after the Brexit vote, markets have rallied this week. Equities, EM, EUR and GBP are up; vol, JPY and USD down.
In our view, the market rally reflects in part the realization that Brexit is more a UK than a global shock and expectations that it will allow central banks to be dovish.
However, in our view, it also reflects hopes that the UK may not activate Art. 50. We are sympathetic to the former, but concerned about the latter. Backtracking from Brexit requires too many "ifs": deep recession, soon enough, changing the public view on the EU, and making it politically popular to ignore the referendum.
We like selling GBP and EUR rallies, but would be constructive on risk assets if NFP data improves next week".
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
