More EURGBP Downside Ahead?
The downside bias for the EURGBP has continued to pay dividends this past week as the pair has remained pressured at 9-month lows near the 0.8750 price level. If you haven't been able to take advantage of the bearish bias alongside us don't worry, there are a few events to watch in the week ahead which could give opportunities to do so.
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The downside bias started with initial comments from Governor Bailey when he pushed back against NIRP on the 12th of Jan.
Following that there have been numerous other short-term drivers pushing the pair lower, such as a rapid decrease in COVID-19 cases in the UK as well as last week's BOE meeting where the bank ticked both the bullish boxes, we were looking for by upgrading their growth outlook for 2021 and also pushing back firmly against Negative Interest Rates.
One of the biggest positive drivers for the GBP apart from monetary policy has been the UK's vaccination program. As we've highlighted in our videos and reports over the past few weeks, this outperformance in vaccine rollout placed the UK in an attractive position to hit the ground running after lockdowns are lifted and bodes well for the economy in terms of relative growth dynamics.
On Friday, the recent Q4 GDP data provide another textbook example of the short-term sentiment and technicals aligning with the med-term fundamental outlook. In the week ahead, we’ll be looking at incoming econ data and possible lockdown news to rinse and repeat in line with the current bearish bias.
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Highlights of the video:
00:28 – Current Baseline
03:26 – Baseline expectations for the upcoming week
05:55 – Sentiment Shifts & Trade Plan
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If you find these weekly analysis and trade ideas useful, you’ll love Financial Source. There’s a link below were you can learn more about it
https://financialsource.co
----
We interpret and explain price moves in real-time, 24 hours a day. Our team of analysts produce text, video and audio commentary.
You understand the markets and trade with confidence. Learn more at our website here: https://financialsource.co
-----
The downside bias started with initial comments from Governor Bailey when he pushed back against NIRP on the 12th of Jan.
Following that there have been numerous other short-term drivers pushing the pair lower, such as a rapid decrease in COVID-19 cases in the UK as well as last week's BOE meeting where the bank ticked both the bullish boxes, we were looking for by upgrading their growth outlook for 2021 and also pushing back firmly against Negative Interest Rates.
One of the biggest positive drivers for the GBP apart from monetary policy has been the UK's vaccination program. As we've highlighted in our videos and reports over the past few weeks, this outperformance in vaccine rollout placed the UK in an attractive position to hit the ground running after lockdowns are lifted and bodes well for the economy in terms of relative growth dynamics.
On Friday, the recent Q4 GDP data provide another textbook example of the short-term sentiment and technicals aligning with the med-term fundamental outlook. In the week ahead, we’ll be looking at incoming econ data and possible lockdown news to rinse and repeat in line with the current bearish bias.
----
Highlights of the video:
00:28 – Current Baseline
03:26 – Baseline expectations for the upcoming week
05:55 – Sentiment Shifts & Trade Plan
----
If you find these weekly analysis and trade ideas useful, you’ll love Financial Source. There’s a link below were you can learn more about it
https://financialsource.co
