- FX and equity options markets provide insight into how markets might react to either a “Deal” or “No Deal” Brexit
- While markets are trading consistently with a slight prediction towards a “No Deal” future, the market movements in either case are likely to be large
Brexit’s next phase will likely see large market movements that can be stress tested well in advance of actual market gyrations
The US-led trade wars are likely to spur a flight-to-quality, parts of which may be counter-intuitive
While the entire world will suffer economically if these trade wars persist, it’s the US that is likely to come out the relative winner
Trade wars, like Brexit, can also be stress tested with our suggested market movements