Strong Pound or Dollar Weakness

Strong Pound or Dollar Weakness

Is it a Strong Pound or Dollar Weakness?

Still monitoring the current economic data, indices recently have been tumbling.

We’ve taken a trade in cable, taking in to account recent economic news relating to UK trade balance, this has shown a deficit of -£1.2 billion, which looks to have missed the market expectations.

Also noting however, is the news of the UK and EU negotiating diplomats who have come out and recently announced they’ve made progress in the Brexit talks, as both sides now seek to reach agreements in continuing in talks. This news will have given the Pound a boost while having a downside effect on the FTSE 100.

The Dollar on the other hand has weakened, recent data regarding NFIB Small Business Index which is a survey of small businesses showed the score as 107.9 which is less than previous months and missed market expectations of 108.9.

We unfortunately didn’t get the GBPUSD trade in the market as early as hoped, we’d have wanted as close to the 13000 as possible, we believe the strong Pound or Dollar weakness could continue some more up until the area below the 13400 price, an area that could still look to be containing many more sellers.

strong pound

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

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