FXB: Pound Not Out Of The Woods Even After Brexit Deal

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About: Invesco CurrencyShares British Pound Sterling Trust ETF (FXB), Includes: EWU
by: WingCapital Investments
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WingCapital Investments
Long/short equity, macro, arbitrage, portfolio strategy
Summary

British Pound ETF (FXB) bounced 9% off the bottom from September 2019 on dwindling uncertainty surrounding Brexit.

Short covering by futures speculators was arguably the main driver behind the massive up-move.

Relatively weak economic data and negative bond yield differential vs. U.S. suggest near-term downside in GBP/USD and FXB.

At last, Brexit is nearing the end of the tunnel as the U.K parliament "voted overwhelmingly in favor of Prime Minister Boris Johnson's Brexit deal, finally paving the way for the United Kingdom to leave