THERESA MAY SPEAKS ABOUT BREXIT:
Tomorrow UK’s PM Theresa May will deliver a speech over BREXIT. The tension is high as seen in today’s session, by the large GBPUSD weekend gap of around 200 pip, with no other reason than the expectation of an hard brexit stance (meaning clarification of leaving the single market in order not to accept freedom of movement) in tomorrow´s May’s speech.
This high impact event is now already shown in most events calendars (MyFxbook, Forex Factory). Last week the calendars were not even showing the event. However, be alert about the exact timing of the speech. It has been changing in MyFxbook and it’s still tentative in FF.
The expectation is that Theresa May will finally cut to the chase, however the situation is highly uncertain and it´s possible that the speech provides conflicting information, resulting in price whipsaw effects to which usually ARION reacts negatively. On the other hand if there is a clear message, ARION will probably be able to catch nice price movements. Due to this binary feature, we have reduced the trading exposure to GBP pairs to about 50% and to EUR pairs to about 67%.
Normal trading will be announced, but it will likely be resumed even tomorrow. Meanwhile stay safe !