Mark Carney fueled markets last Thursday by creating flames to rise to heights not seen since his predecessor Mervyn King was at the helm of the BOE. Last weeks’ super Thursday started as expected when the chair announced to no surprise, that rates were to be left unchanged at 0.75%. He then went on to announce growth forecasts were to be revised to 1.2% which is the lowest level since the financial crisis. Not stopping there this Tuesday while speaking in a town hall attended by business leaders in London he continued, stating what many fear, that a no-deal Brexit, essentially would spell chaos for global markets.

Although the BOE have lit the fire on what is already a volcanic hotseat for the government, Tuesday also saw the government announce it had agreed a post-brexit trade deal with Switzerland, which led to a rally in the pound. This rally saw the long-term floor price of $1.28 in GBPUSD held after threatening to breakout last week.

 

GBPUSD

Chart

Now that this has been held, the question this week is can the recent short-term ascending triangle continue and spark a bull run toward the $1.32? Many believe this may be short lived, as tensions mount each day that passes with dimmed lights of optimism preventing markets to gain clear sight and move forward from these volatile times.

As of now, the volatility is positioned to continued and with UK CPI numbers out on Wednesday morning, seeing how the confidence of consumers currently stands will likely be a trigger for further runs in cable as the exit countdown edges closer.

Trading any financial instrument on margin involves considerable risk. Therefore, before deciding to participate in margin trading, you should carefully consider your investment objectives, level of experience and risk appetite. Most importantly, do not invest money you cannot afford to lose. Consulting with your investment counselor, attorney or accountant as to the appropriateness of an investment in margin trading is recommended. This electronic mail message is intended only for the person or entity named in the addressee field. This message contains information that is privileged and confidential. If you are not the addressee thereof or the person responsible for its delivery, please notify us immediately by telephone and permanently delete all copies of this message. Any dissemination or copying of this message by anyone other than the addressee is strictly prohibited.

Feed news

Latest Forex Analysis

Editors’ Picks

EUR/USD: it's all about the Fed

The greenback closed the week on a high note, as data released Friday topped the market's consensus, suggesting that the US economy remains in good shape, and therefore the US Federal Reserve won't need to take a dovish turn.

EUR/USD News

GBP/USD recovers to 1.2600 as UK politics become clearer

While overall US Dollar (USD) strength continues to dominate market sentiment, the GBP/USD pair recovers to near 1.2600 as an outcome of the UK PM’s race becomes clearer during early Monday.

GBP/USD News

USD/JPY better bid above 108.50 amid risk-on

USD/JPY keeps the minor bids intact around 108.60 region amid a better risk sentiment. However, the further upside appears capped on a broad US dollar retreat, as all eyes remain on the Fed. 

USD/JPY News

Trade War With India Starts: How Trump is Winning the Global War in 10 Tweets

After a year of talks on U.S. barriers to Indian steel and aluminum, India retaliates against Trump. The Hindu reports India to Impose Retaliatory Tariffs on 29 U.S. Goods Starting June 16. 

Read more

Gold: Signs of bullish exhaustion ahead of the Fed

Gold's rally seems to have run its course with signs of bullish exhaustion emerging on technical charts ahead of Wednesday's FOMC (Federal Open Market Committee) rate decision. Gold is currently trading at $1,339.

Gold News

Majors

Cryptocurrencies

Signatures