Here we have an update to the Cable chart. The UK going back to the 1600’s as odds of another vote on PM May’s deal in the House of Commons this week are very low. For a house of “Commons” they are certainly lacking “common sense”. ... The rules are that two votes on the same motion are not permitted during the same parliamentary year. This means PM May will...
A "dovish" surprise from the Fed yesterday ...but does it really matter? Well the removal of 2019 hikes is worth highlighting because it does not fully support the story we are being told from macro data meaning the bar is set high for any further hikes.History tells us it’s very unusual for the Fed to pause for a long time in hiking cycles before resuming...
For Brexit we are in the same path as before with EU leaders granting extensions till 31st October. Tory backbenchers are trying to get rid of PM May but is proving difficult, whilst Labour talks are not showing any signs of finding common ground in the immediate future. I expect more of the same running down the clock approach with the odds of another extension...
We have a very similar setup to that in GBPNZD (see attached: "Expanding Diagonal in GBPNZD" for more information on the technical side as we will not be covering that here). As expected the House of Commons rejecting the idea of a no-deal Brexit yesterday (although by default unless there are any changes we are heading for this outcome so it still remains in...
Round 2 is in play for the House of Commons tonight. The house are voting on whether it supports leaving the EU without a deal. Markets are overwhelmingly expecting this to be rejected, leaving the possibility of a Brexit extension (round 3) tomorrow the most likely scenario. Expecting a soft rally on the thought of no-deal being removed. A nice pipe-dream and...
We have some time ahead of "House of Commons: Chapter 2" later today so it is a perfect opportunity to start dissecting the moves in cable that have been traded live in Tradingview. Our first position on the sell-side came in at 1.329 (see attached idea "Selling cable with incoming dollar strength") as we were expecting the highs to be set as markets finished...
In his speech today BoE Governor Mark Carney said that global growth this year is expected to be at around 3.25%. Since the Brexit referendum, the pound has fallen 25%, causing incomes to fall, and slowdowns all over the economy. Historical stability, solid financial institutions and a well-built social/political system allow the country to maintain afloat. Carney...
I am expecting the Brexit No Deal issue will sooner or later pressure the sterling and also the issue about renewing Carney "reign" at the BOE. Technically, I believe GBPUSD is in a downtrend. I will short GBPUSD if I see a Bearish Engulfing Candle or Dark Cloud cover in one of these levels I've marked with red arrows. Target(s) are based on the average daily...
Oil market The oil market continues to master successively new peaks, rising on Monday to the highest level since July 2015 . Oversupply is steadily declining while Saudi Arabia's readiness for changes looks even more reliable against the backdrop of anti-corruption detentions in the higher echelons of power in the kingdom. Prince Mohammed Bin Salman made a...
At first I thought Carney was very concerned with inflation and yet it seems he is more concerned with Brexit and given the BOE independence, they can divert from the original inflation target i.e. withstand more inflation or GBP weakened to smooth the Brexit experience. Given his talk, I don't think the PM will reverse her tone.
After a sell off in the UK Pound from the election last week, we saw a hawkish BOE this week. Well... another flip flop in the market that might have left traders confused. Here's my perspective on GBPUSD - I believe we still have more down side for this pair, perhaps towards the 1.2510 area. Technical analysis wise - 1) We have a bearish impulse formed, and...
Price has bounced very well at PRZ, going short, targets are clear on chart.
The BOE’s interest rate decision scheduled for May 11 will be the main event risk on the UK economic calendar. Based on the market consensus the BOE is expected to keep its policy rate unchanged. However, what is far more important from the pound’s perspective and for the market is how many BOE policymakers might lean towards tightening and vote to raise interest...
Bat Pattern B: 0.382 - 0.50 C: 0.382 - 0.886 D: 1.618 - 2.618 (1.618, 2.00, 2.618) Final X to D: 0.886 AB= CD extension 1.618, 2.00, 2.24, 2.618
Waiting for a break at 1.20 level, or a possible recovery and bounce somewhere at 1.28243-1.38661 before shorting again (www.investing.com)
Sterling surged to a four-week high on Thursday after England's High Court ruled that the government needed parliamentary approval to trigger Brexit and the Bank of England scrapped plans to cut interest rates. The government said it would appeal against the ruling by England's High Court, and Britain's Supreme Court is expected to consider the appeal...
On Thursday BOE will publish its rate decision and monetary policy summary. Following latest Carney's speech, people now know that BOE is starting to monitor the currency's weakness following Brexit - They will pay attention to what BOE will have to say about it in the coming meeting. Technically 1.21 is the current support zone. The price is holding above it...
Stalking a good buy price again for this pair, possibly a bounce somewhere near 0.8968 with wider SL (close to the trendline), or a breakout at 0.91020 (R2), while keeping close watch on its ATR for another round of volatility esp it's near the weekly range resistance already. (www.euroexchangeratenews.co.uk)