With much focus on Ukraine there is nothing to really trade today as European &UK news flow is quiet, with very little on the calendar today, likely to keep trading volumes very light.
However, here is a brief catch up on two currencies I’m looking at trading in the longer term and why.
The GBP is currently a very bullish currency that is being driven by speculation of a interest rate hike from the Bank of England by the end of 2014, I’m looking for a nice sell off on GBP/USD in order to start buying it back, good levels of support are around 1.7000 to 1.6900 with a long-term target of 1.7500 in the coming months.
On Wednesday we have the MPC Official Bank Rate Votes, and we are looking for some members of the MPC wanting to raise rates sooner rather than later, if we get some disagreement in the Bank Rate Votes then we could see a new batch of strength for the GBP which could send GBP/USD on its way towards 1.7500 over the coming weeks.
I’m still viewing the euro as a bullish currency as long as it holds above 1.3500, this is because the market is still disappointed with the ECB, the market wants the ECB to introduce a QE programme in order to start selling euros, so until this point I will have a bullish bias on the euro. 1.3500 stands as strong support for the time being, you could look to buy the euro from the low 1.3500’s with a long-term target of 1.3800.
Pre Session events
Weekend news focus remains on Ukraine with further EU sanctions on Russia to be discussed on Tuesday after Western briefings said the downing of MH17 in eastern Ukraine was a mistake,with pro-Russian separatists and Russian military personnel behind the shooting of a surface-to-air missile.
At no time should anyone view the information presented anywhere on this website as advice, recommendation or proven. Everything reflected is merely opinion and may not be accurate. The purpose of the site is to express the opinions and views of Jarratt Davis. There is no intention to offer specific help, advice or suggestions to anyone reading any of the content posted here.
Recommended Content
Editors’ Picks
EUR/USD clings to modest gains above 1.0650 ahead of US data
EUR/USD trades modestly higher on the day above 1.0650 in the early American session on Tuesday. The upbeat PMI reports from the Eurozone and Germany support the Euro as market focus shift to US PMI data.
GBP/USD extends rebound, tests 1.2400
GBP/USD preserves its recovery momentum and trades near 1.2400 in the second half of the day on Tuesday. The data from the UK showed that the private sector continued to grow at an accelerating pace in April, helping Pound Sterling gather strength against its rivals.
Gold flirts with $2,300 amid receding safe-haven demand
Gold (XAU/USD) remains under heavy selling pressure for the second straight day on Tuesday and languishes near its lowest level in over two weeks, around the $2,300 mark in the European session. Eyes on US PMI data.
Here’s why Ondo price hit new ATH amid bearish market outlook Premium
Ondo price shows no signs of slowing down after setting up an all-time high (ATH) at $1.05 on March 31. This development is likely to be followed by a correction and ATH but not necessarily in that order.
US S&P Global PMIs Preview: Economic expansion set to keep momentum in April
S&P Global Manufacturing PMI and Services PMI are both expected to come in at 52 in April’s flash estimate, highlighting an ongoing expansion in the private sector’s economic activity.