Trade 3 Short GBPUSD (-10 pips)
Trade 2 Long EURGBP (+21 pips)
Trade 1 Short GBPUSD (+40 pips)
Both trades taken from the trade of the day section and have full explanations there. The results from the Bank of England super Thursday were supportive for these positions, the vote to keep interest rates unchanged remained at 7-1 despite expectation for a second dissenter. Inflation forecasts were moved down a little and described once again as transitory, related only to the drop in the value of the pound(which means they are not going to raise rates due to higher inflation-very bearish). Economic forecasts were pulled down by the banks dissapointment with wage growth which they say is begining to make things more difficult for UK households. This was not the slam dunk I was hoping for but is enough to keep the trades going for a little while. One really interesting point is that the Banks models assume an orderly Brexit and a period of integration of the new trading arrangements, this adds extra risk to the pound. If negotiations do not go well the Bank will be forced to build more disorderly scenarios into their models meaning an inevitable downgrade in the future
RetiredearlyFX is a trading name of the investment company Bagehotsway.
We are not a regulated company but we only sell regulated products.
We are not authorised to give investment advice.
We believe all figures quoted to be accurate but past performance in no way guarantees future performance
Trading FX is high risk and not suitable for everyone.