Trade Recommendations for current Session
There is little to really trade today given relatively light news flow over the weekend and major pairs trading on tight ranges. Also there is little on the calendar today where we have commentary from the head of the ECB and a consumer confidence reading also coming from the EU.
I will still be looking to buy the GBP,with the referendum out of the way I would expect GBPUSD to climb back up to 1.6700, having said that I don’t expect it to be a simple rally and still foresee some short term volatility on the GBPUSD given the notable strength of USD and yet significantly oversold GBP.
On Friday following the referendum we had a situation where there was an immediate GBP sell off against the USD following a sudden rally. This was the effect of traders taking profits after being stuck in lengthy losing GBPUSD positions, where the majority of TP points will of been around the 1.6330 level.
Pre Session events
Several members of the ECB have made statements over the weekend with the main point of discussion being that QE is not an option they are considering and they are looking to stick to ABS and the purchasing of bonds as their main means of stimulating the Eurozones economy moving forward. This has seen a slight decrease in uncertainty regarding the EUR as further stimulus measures now seem unlikely.
Elsewhere commodities are experiencing about of weakness with Gold trading at its lowest level witnessed in 2014 and Silver trading at 2010, this is caused by speculation of a tightening in the Feds policy and the markets fears the Chinese economy is slowing down.
The USD has experienced marginal losses across the majority of pairs with GBPUSD being the most notable shift in price action as the market will now start to focus on when the BoE plans on tightening policy. The NZD rose slightly against the USD following Prime Minister John Key winning his third term which will signal a period of further stability for the NZD.
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.
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GBP/USD retreats toward 1.2450 on modest USD rebound
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Gold trades in positive territory above $2,380 on Thursday. Although the benchmark 10-year US Treasury bond yield holds steady following upbeat US data, XAU/USD continues to stretch higher on growing fears over a deepening conflict in the Middle East.
Ripple faces significant correction as former SEC litigator says lawsuit could make it to Supreme Court
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Have we seen the extent of the Fed rate repricing?
Markets have been mostly consolidating recent moves into Thursday. We’ve seen some profit taking on Dollar longs and renewed demand for US equities into the dip. Whether or not this holds up is a completely different story.