Long GBPUSD and short EURGBP - BNPP
|Research Team at BNP Paribas, suggests that the focus this week will remain on any Brexit-related political developments which is likely to have impact on GBP crosses.
Key Quotes
“On Thursday, the UK High Court will hear testimonies arguing that the government has a duty to get parliamentary approval before triggering Article 50. The case is expected to conclude on 18 October. BNP Paribas STEER™ initiated long GBPUSD and short EURGBP signals Monday. According to the relationships captured by the model, the sell-off in the GBP has been too aggressive relative to price action in other asset markets following UK Prime Minister Theresa May’s speech 2 October.
Elsewhere, more European Central Bank members are scheduled to speak over the coming days, including: Mersch, Weidmann, Coeure and Draghi. Our economists think their tone will remain dovish ahead of the ECB policy meeting on 20 October.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.