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
The US dollar is regaining momentum after the Commerce department upgraded its first quarter GDP estimate from 0.7 percent to 1.2 percent. The U.S. Federal Reserve was already considering the slowdown a transitory one as per the minutes from its May meeting that were released on Wednesday. US political risk is keeping the USD from taking off as the Russian connection probe is now targeting Trump’s son law Jared Kushner. The price of gold has risen as investors look for a safe
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
For the past few weeks, front page news dictated currency flows with investors taking in headlines on big stories like the U.S. attack on Syria to the bombing in Afghanistan and President Trump’s currency comments. Of course the U.S. is not only the source of trouble as there’s also been terrorist attacks across Europe, Brexit and this weekend, we have the first round of the Presidential election in France. So it should be no surprise that the main theme in the Forex market i
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 U.S. dollar traded lower against all of the major currencies with the exception of the Australian dollar. This divergence is a sign of risk aversion and not a function of Australia’s economy as there were no major economic reports released this past week. The RBA minutes were also optimistic. The only other explanation for AUD’s underperformance is the decline in iron ore prices. The best performer was the Japanese yen and the British pound. The former rose on risk aversi
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
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