GBP whipsawed by BOE; focus turns to the AUD & CAD today

Aussie dollar coins

How Do We Make Money Today?

Sterling jumped as much as 1.3% after the Bank of England said interest rates probably needed to rise sooner and by a bit more than it had previously thought because of the strength of the global economy.

It wasn’t exactly a clean move with GBPUSD jumping all over the shop. it started at 1.3880 and finally topped out just under 1.4080 before retruning to 1.3880…go figure!

The move back down from the highs came about from two things:

  1. This is a Brexit-contingent hawkish signal & could change anytime

2. a broader sell-off in equity markets during the North American session hit sterling.

Now the BOE is out of the way we can once again concentrate on economics … & we have a couple of good opportunities today on the Aussie & Canadian dollars.

AUD – Housing Finance & RBA MOnetary Policy Statement … followed by Chinese CPI an hour later.

CAD – Employment chnage & Unemployment rate

Beware media hype around the US equities market which are again down 4% on the day. That could underpin the USD and see YEN & CHF rally.

Trading Pairs to Focus On

AUDUSD & USDCAD

Check our Next Best Trades list for full details as to why these pairs are in focus.

Technical Set Up – What’s Happening with the Majors

Check our Daily Analysis for detailed analysis of the Major currency pairs.

Today’s Fundamental Drivers

Plan the Trade, Trade the Plan!

The idea of our “Market Insight” is to give you some guidance into your daily preparation.

Your Daily Analysis needs to become habitual – For full guidance on our daily routine click here.

Make sure you don’t waste unnecessary time in front of the screens.

Remember you need to be fresh, confident and ready to trade and by sitting aimlessly in front of your screens you will become stale and uncertain.

The key to your sucess: Isolate the opportunities that work for you and focus on them.

Don’t worry about things that you can’t make…..chasing them will only cause problems (tiredness & irrational behaviour will take over).

Tune up your charts & get ready to trade…..see you in the 247 Trade Zone!

Brad

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