Please note that the following is a re-post, written by IC Markets, not Killa Gorilla FX Team.
It contains important information and what it means if you are currently trading.... ***************************************************************************************************************** Dear Trader, The UK General Election 2017 is scheduled to take place today, June 8th.
This will create many trading opportunities for our fundamental traders, particularly across GBP,
When Theresa May called a snap election on April 18, polls indicated a comfortable 20 point lead for the Conservative party and a safe bet in her attempts to increase her party’s majority. Market sentiment soared, however, the tightening of the polls in the lead-up to the elections calls for a closer look on how the markets could be affected by each outcome. A Conservative majority is still considered the most likely scenario and it is therefore expected to be interpreted as
We are coming off the heels of an interesting week for the U.S. dollar which ended the week stronger versus the British pound, weaker versus the New Zealand dollar and basically unchanged against other major currencies. This divergence can be explained by the market’s fading confidence in the Federal Reserve. Fed Fund future are pricing in 100% chance of a June hike but data and the FOMC minutes suggest otherwise so investors are waiting for a reason to swing one way or the o
The U.S. dollar traded higher against most of the major currencies this past week. Unfortunately the strength was driven by risk aversion and not healthier data. This can be confirmed by the fact that the Australian dollar was the worst performer and the Japanese yen the best performer. High beta currencies tend to perform poorly when investors are nervous whereas the yen is generally bid up under these same conditions. Geopolitical risks are front and center for forex trader
The US dollar is mixed as it gained against the EUR, CHF, NZD and JPY but lost ground against the CAD, GBP and AUD. Political risk continues to impact markets as US uncertainty, the official triggering of Brexit and the upcoming French elections make investors anxious even as energy markets rebound thanks to a possible extension to the Organization of the Petroleum Exporting Countries (OPEC) production cut deal. On the diplomatic front Chinese President Xi Jinping will visit
UK PM Will Deliver Letter Triggering Brexit The Prime Minister of the United Kingdom, Theresa May, will invoke article 50 of the Lisbon treaty on Wednesday, March 29 at 7:00 am EDT (11:00 GMT) by telling the British parliament that she has submitted the signed letter to the European Union. This symbolic exchange will trigger a two-year process that will result in the UK withdrawal from the EU. The PM will face questions from the Commons at that time with a statement expected
The USD is weaker against major currencies across the board after the Fed hiked rates for the third time since the financial crisis but lacked upgrades to the economic projections. A proactive but patient Fed, with other central banks standing pat, meant the forward looking FX market came away with a less hawkish view on future US interest rates and sold the USD despite a 25 basis points hike to the benchmark rate. Fed member speeches during the week will give the central ban
The U.S. dollar traded lower across the board this past week. The best performers were the Australian dollar and British pound but outside of the euro, nearly all of the major currencies appreciated more than 1% against the greenback. Who would have thought that when the Federal Reserve raised interest rates by 25bp, the U.S. dollar would tank? But that was exactly what happened this past week as the greenback tumbled against all of the major currencies. Investors began unwin
The USD dropped versus majors after the much anticipated rate hike at the end of the March Federal Open Market Committee (FOMC). The Fed raised rates by 25 basis points as expected, but did not alter economic projections and Fed Chair Janet Yellen was less hawkish than the market expected given her comments in the buildup to the policy meeting. A week filled with central bank activity continues with the Bank of Japan (BOJ) policy rate in overnight trading to be followed by th
The USD is higher across the board awaiting the release of the Federal Open Market Committee (FOMC) rate statement on Wednesday, March 15, at 2:00 pm EDT (6pm GMT). Fed speakers went out of their way in making sure they telegraphed the central banks’ decision as the market expected a more patient Fed given the Trump administration has not launched its tax stimulus and infrastructure spending policies. The CME FedWatch tool based on Fed fund rate futures shows the market has l
Key levels were broken all around with EUR/USD testing 1.05, USD/JPY hitting 114.50, GBP/USD cracking 1.2300 and AUD/USD breaking below 76 cents. These big moves give traders a taste of the volatility that they can expect this month as there are a number of high profile events in March that could shake the financial markets. This coming week for example we have the European Central Bank’s monetary policy announcement and the U.S. non-farm payrolls report. The following week i
The U.S. dollar is mixed against majors as the Federal Open Market Committee (FOMC) minutes pointed to an interest rate hike “fairly soon” but were contrasted with cautious comments from Treasury Secretary Steven Mnuchin that have reduced expectations of pro-growth policies being introduced in the short term. House Speaker Paul Ryan invited President Trump at the end of January to speak before congress to deliver his first public address after his inauguration. This could be
It’s been more than seven months since the UK voted to leave the European Union in a referendum that will change the shape of the country for years and despite strong warnings in the run up to the vote, the economy is still ticking along nicely. This should make Super Thursday another interesting affair for Bank of England Governor Mark Carney as he faces the very journalists he delivered those warnings to and has since faced some tough questions from. The central bank is exp