The discussions over how much it could cost the UK to exit the EU is what the ministers have been discussing all along. A fresh mandate for UK PM Theresa May would provide her with ample negotiating power but it now seems to be trimming down.
This now seems to be a 'Deja Vu' or a similar situation when John Majors likewise walked out from the ERM that led to a massive decline of the Sterling Pound. And the ill effects of another action of simply walking out from the EU is up in the air as some reports have mentioned.
This now seems to be a 'Deja Vu' or a similar situation when John Majors likewise walked out from the ERM that led to a massive decline of the Sterling Pound. And the ill effects of another action of simply walking out from the EU is up in the air as some reports have mentioned.
EURBP Cross Rate As of 5.21.17
What ever the case maybe, the European majors have gained traction with prices recovering above their recent range bound levels where the #EURUSD is now trading @1.1258 & #CABLE @1.3017 as of this writing. This enabled the #EURGBP Cross rate to outmaneuver a lagging price stalled earlier last week @0.8600 with an opening gap @0.8615 have provided a lift for the EURO to extend its gains in the early US trading session.
UPDATE: As a result, the EURGBP Cross has emerged as the beneficiary of such market condition as it is currently being traded at 0.8743 as of this writing.
For now with a slight exception to the rule for the Pound: the EURO correlated currency pairs reflects a positive tone still supported by a corrective weaker USD. This would also leave an equally good sentiment for the European majors and their respective counterparts to increase market actions long been sluggish from their individual trading range. Its about time!
What ever the case maybe, the European majors have gained traction with prices recovering above their recent range bound levels where the #EURUSD is now trading @1.1258 & #CABLE @1.3017 as of this writing. This enabled the #EURGBP Cross rate to outmaneuver a lagging price stalled earlier last week @0.8600 with an opening gap @0.8615 have provided a lift for the EURO to extend its gains in the early US trading session.
UPDATE: As a result, the EURGBP Cross has emerged as the beneficiary of such market condition as it is currently being traded at 0.8743 as of this writing.
For now with a slight exception to the rule for the Pound: the EURO correlated currency pairs reflects a positive tone still supported by a corrective weaker USD. This would also leave an equally good sentiment for the European majors and their respective counterparts to increase market actions long been sluggish from their individual trading range. Its about time!
For now an initial cap for the EURO @1.1250/70 reflects a pause before the next level @1.1380. A probable technical reaction for a relief USD recovery is expected before the end of the week's trading.
ReplyDeleteAnd as a result, the EURGBP Cross has emerged as the beneficiary of such market condition as it is currently being traded at 0.8743 as of this writing.
ReplyDeletePrice Update: The EURGBP Cross continues its upward trajectory as the beneficiary of a cross trading strategy more from the USD weakness after a recent price recovery on both sides of the European majors. Currently trading @0.8820
ReplyDeleteIt now takes at least 4 weeks or a month to be able to get a decent enough move from the FX market nowadays.
ReplyDeleteFinally after making a this call since may 22, 2017 we have seen how long it takes for a decent major movement to occur but well worth the wait. Sacrificing negative swaps with the EURUSD have been offset with a net positive effect from the USD UDN strategy on the bearish outlook of the USD Index.
ReplyDeleteLikewise breaking out of the 1.1380 that led to marking a high at 1.1435 for the EURO. Although, a probable session pull back can be expected since this is the first breakout price which could draw some liquidation before the end of the week's trading and end of the 2nd quarter 2017.