British Pound Takes a Tumble

British Pound Takes a Tumble

The British Pound Takes a Tumble and has helped us to profit.

The Pound weakness continues, this can be put down to the current Brexit news, we’ve seen the British Pound lose 0.5% against the Euro and US Dollar, as well as can be seen from one of our trades, trading GBPNZD.

In New Zealand Economic news on Sunday, we had the ANZ Commodity Prices m/m which is the average price for New Zealand’s main commodity exports sampled on the global market, this came in at -3.2%.

However on Monday we had the BRC Retail Sales Monitor y/y out of British Economic data at 0.5%, this would have weakened the British Pound as it’s a measure in the value of same-store sales at the retail level.

These bits of data and the news about the possible No-Deal with the EU in the Brexit negotiations, the British Pound will be weaker, so we took the opportunity to go short GBPNZD.

Noting the GBP being in a bearish position, the cheaper Pound makes imports more expensive, however the upside to this is making UK exports cheaper and competitive to other countries in the world, what will be critical is the meeting in October between Theresa May and EU leaders.

We wanted to stay in the trade for longer, though being cautious of the potential buyers building up in the zone around the 19000.0 area, we didn’t want to leave good money on the table and took the £125.90 for the fund while the going was good.

British Pound

(Our trading and image was done using an account with UK based broker IG)

*Please Note, Forex and other forms of trading carry a high level of risk to your capital as you could lose all of your investment. These products may not be suitable for every investor, therefore ensure you understand the risks and seek independent advice. Invest only what you can afford to lose. We are NOT financial advisers and we do NOT offer financial advice. 


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