Tag Archive Pound

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)

*Please Note, Binary Options and Forex trading can 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. 




FTSE 100 Trading Between Zones




FTSE 100 Trading between zones, we are still in our trade at a profit.

Amid fears of the UK potentially heading for a no deal Brexit, this in turn will weaken the Pound and currently does so, however the FTSE 100 does benefit from a weaker currency.

Other economic news has seen the recent sanctions by the US government on Russia which has led to the commodities selloff,  the FTSE 100 contains a number of mining and oil stocks, a lot of these can be effected by Commodities in Russia.

With note of the economics, for a while the FTSE 100 trading has mostly been contained to between the two zones, an area of support holding buyers at around the 7600.00 price, while the area around the 7800.00 has been keeping the FTSE 100 in check and acting as resistance stopping further upward movement.

The large amount of sellers at around the 7800.00 will need to be weakened if the FTSE 100 is going to reach the 8000.00 price mark.

FTSE 100 Trading

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

*Please Note, Binary Options and Forex trading can 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. 




Correlation trade on GBPUSD and FTSE 100 12th Oct +£52.10 Profit

A representation of how correlation works. As the value of pound rises, the FTSE 100 decreases in value, and why? Well because assets require more purchasing power when the pound decreases in value. Aiming for 13180 as a trade target but we were happy with current profit so closed out. However, in hindsight, we should have held for a little bit longer because it absolutely smashed through our target and is in the 133 area.

FTSE

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

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*Please Note, Binary Options and Forex trading can 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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