Prime Minister Theresa May launched a desperate appeal to her Conservative Party lawmakers to unite behind her in driving through a Brexit agreement that might be palatable to EU leaders.
May urged her party to “move beyond what divides us” and sacrifice “personal preferences” to unite in the “higher service of the national interest.”
In a letter to her MP's, May indicates plan to return to Brussels for further talks with European Commission President Jean-Claude Juncker next week and plans to speak to all EU members state leaders days ahead.
Lawmakers rejected her deal by a huge margin on Jan. 15
“Our party can do what it has done so often in the past: move beyond what divides us and come together behind what unites us; sacrifice if necessary our own personal preferences in the higher service of the national interest; and rise to the level of events in a way that restores the faith of the British people in our political process.”
According to Logikfx's COTA (Commitments of Traders Analysis) Asset Managers & Hedge Funds are both net short on the pound, but are tending towards a potential shift... falling suspiciously in line with Brexit outcomes due in coming weeks.
What does this mean for Forex Traders?
The Asset Managers and Hedge Fund (non-commercial) players are in the markets to seek a profit. Unlike commercial participants, whose market activity is derived from risk aversion & hedging against loss on imports and exports.
Many traders then use this information to assume that following the non-commercial biases when trading currencies, will support their trading decisions. Why wouldn't they? The non-commercial participants spend billions on market research, and COTA shows you their exact net positions every week.
In essence allowing you to see the outcome of thorough research, without spending a fraction of the costs necessary to come to those same conclusions!
When both non-commercial participants align on a sentimental bias, towards a currency, it can indicate future potential weakness due the the influential purchasing power of both parties.
GBP FUTURE POTENTIAL WEAKNESS?
May's uncertain approach towards brexit and COTA's outlook is looking bleak for the British Pound.