Investors should avoid trading sterling in the spot market for the rest of 2019
given the risks surrounding Brexit, says BMO Capital Markets. "With calendar
year-end rapidly approaching we'd prefer to stay away from trading spot,
especially because it seems that FX investors have suddenly become a lot more
sensitive to 'bad news' since last week's U.K. election results," BMO FX
strategist Stephen Gallo says. GBP/USD is last down 0.4% at 1.3073 and EUR/GBP
rises 0.1% to 0.8501 due to concerns that the Brexit transition period won't get
extended to allow more time for a U.K.-EU trade deal to be agreed in an
environment with a "pronounced lack of FX market liquidity,
Forex and stock traders are looking for the consistently wrong investor, trader and take the opposite position. This will obviously lead to winning trades for them. All traders have read trading books that point out that increasing volume is good for the continuation of the trend. Many new stock traders will try and fight the trend.
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