Pound Sterling’s Foggy Future
Weaker recoveries were seen in both the UK manufacturing and service sectors, with the latter recording the greatest loss of momentum since July.
Formal Brexit: one event – dozens of widely differing opinions
2019-11-11 • Updated
Article 50 trigger – formal notification of Britain’s intentions to leave the European Union – is a story of the day. The Article will be invoked at 14:30 MT time. Market analysts offer various trading tips. But it’s for you to choose the most suitable one.
Some market strategists recommend not to rush into trade against the sterling and not to join the crowd of short sellers. This cohort of economists argues that prediction of GBP drop to 1.10 against the USD are designed to fill the space in the headlines. There are not based on the economic reality. A move downside is well priced in, so, as long as prices remain above the recent lows, the risk of bullish reversal is still in place. The act of Article 50 invocation could be one of those “sell the rumor, buy the fact event, that has a potential to send the pound towards 1.3000 area. Some of them say that the main focus will be not on the event itself, but on the comments accompanying the letter. The more details on future talks we get, the more confident we will be in our projections for the future path of the sterling (as additional information will partially eliminate uncertainty surrounding the future relationships between the UK and the EU27).
Another group of market analysts disagrees with their colleagues saying that it is not a proper time to become bullish on the pound. This is a so-called “crowd” for the analysts from the first group.
The third group is the group of “Machiavellian foxes” as I dubbed them. They prefer staying in the trenches until the dust settles down and only then rush into trading. They are intended to hold off for an hour or two allowing the market to digest the information, and then ride the established trend in the New York and Asian trading sessions.
Similar
GBP Awaits Bank of England’s Policy Report
What will happen? The Bank of England will present a monetary policy statement on Thursday, August 4 at 14:00 MT (GMT+3)…
Bank of America: GBP Will Rise in 2021
The British pound has advanced in the first half of the year, especially against the euro. Will this trend sustain in the second part of 2021?
Latest news
USD: Powell Speaks on Cutting Interest Rates
Jerome H. Powell, the Federal Reserve chair, stated that the central bank can afford to be patient in deciding when to cut interest rates, citing easing inflation and stable economic growth. Powell emphasized the Fed's independence from political influences, particularly relevant as the election season nears. The Fed had raised interest rates to 5.3 ...
WTT: Currency Pairs To Trade In April
Hello again my friends, it’s time for another episode of “What to Trade,” this time, for the month of April. As usual, I present to you some of my most anticipated trade ideas for the month of April, according to my technical analysis style. I therefore encourage you to do your due diligence, as always, and manage your risks appropriately.
EURUSD: Seeking liquidity in weekly selling zones. Key intraday levels.
Bearish scenario: Sell below 1.0820 / 1.0841... Bullish scenario: Buy above 1.0827...
