G20: what did the leaders decide?
The G20 summit took place in Bali, Indonesia, on November 2022…
GBP managed to resist USD
Information is not investment advice
Almost all currencies have loosened against the greenback today, but the GBP keeps rallying. How is it possible?
What happened?
As you can see below: the Australian dollar and the Euro weakened today amid the overall risk-off market sentiment. It was caused by the fresh resurgence of new virus cases in the USA, Australia and some parts of Europe. However, the British pound stays strong, even despite its risk sensitivity. The main reason should be the encouraging data from the UK. The British construction PMI came better than analysts expected. It turned out 55.3, while the forecast was 46.0. Also, today the house price index bet estimates. They contracted only by 0.1%, while analysts anticipated the drop by 0.8%. By the way, the EU’s chief negotiator Michel Barnier arrived in the UK for another round of Brexit talks. Sooner they make an agreement, better for the British pound.
How to trade?
Traders are intrigued as GBP/USD is approaching the key resistance (or as they call it “game changer”) at the 1.253-1.254 area. It’s important because it will define the further EUR/USD movement. Will it continue its 6-day rally or drop following its peers? If it breaks this area through, bulls will win and the price may surge to the next resistance at 1.2595 and then even to the 200-day moving average at 1.2666. Otherwise, it will reverse and fall to the support at the 50-day moving average at 1.2420. The next barrier will be at 1.2300. Don’t lose your chance!
Similar
The End of Era: What Might the UK Face Next?
The deafening news shocked the whole world yesterday: the British Queen Elizabeth II died peacefully at the age of 96…
Why didn't oil prices calm despite OPEC+ attempts?
After months of pressure from the White House, Saudi Arabia relented and agreed with other OPEC+ members to increase production.
Popular
Best Instruments to Trade This Week
This week, there are a few high-probability trade ideas I'd like to recommend to you. Trading these setups, be sure to implement a proper risk management approach.
European Currencies Ahead of the Banks' Statements
On Thursday, the 2nd of February, the Bank of England will publish its report concerning interest rates and inflation data for the Eurozone. Professionals and investors anticipate that Andrew Bailey’s lead team of policy makers will likely raise interest rates to 4%; the highest in over a decade, for the tenth time in a row.
Will the FOMC Surprise the Markets?
The first FOMC meeting comes after a buildup of anticipation from traders and investors alike, as the markets await what posture the Fed will take regarding the interest rates; would there be a hike or a cut in interest rates? Recall that the Federal Open Market Committee had previously ended the year 2022 with a 50bps hike, and an indication from Powell, the committee chairman, that the Fed could consider raising interest rates by 75bps in the course of the year 2023.
Choose your payment system
