How To Trade Supreme Court's Decision on Brexit

How To Trade Supreme Court's Decision on Brexit While Focus Also On Trump's Executive Orders

Ahead of tomorrow’s Supreme Court’s decision, both FTSE and Sterling are the major focus for investors. If the Supreme court provides a decision which is against the government’s unilateral power (triggering the article 50), we could see the sterling moving higher. The reason will be that parliament will have much more to say in triggering the Article 50 and most importantly, it fades the chances of Scotland prompting another referendum. Scotish can no longer play the card that the Brexit is against their will if the vote comes to the parliament. As for the FTSE, higher sterling could take some more wind out of the index.

On the flip side, if the Supreme court say that Theresa May does have a unilateral decision in activating the article 50, we could see the sterling falling. Traders will perceive that Theresa May is going to achieve her “clean” Brexit without major hurdles. For the FTSE 100, lower sterling has provided ammunition for higher moves.

Over in the US, it is all about the executive orders and Trump’s ability to deliver what he has promised. So far, he has shown that he is determined to renegotiate all major deals such as NAFTA and TPP. His slogan of “America first” is the major denominator here and he wants to negotiate deals separately with different countries.

Investors have not shown much love so far because both the dollar and the US markets lacking any sign of confidence. So far, this has been a typical case of buying the rumor and sell the news.

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