📢EURGBP | Short Entry | Week Ending Update | SteadyTradeAI™️📢

10 thg 9, 2021

The euro/pound dropped on Thursday as the European Central Bank only made a modest monetary policy change. The currency pair also exhibited minimal response to the mixed bag of UK economic statistics released on Friday, which showed lower-than-expected growth offset by higher-than-expected industrial output numbers. This implies that fundamental GBP traders will be anticipating the publication of UK labor market data on Tuesday, as well as inflation data on Wednesday. The majority among analysts surveyed by news agencies is that headline year-on-year inflation would increase to 3% from 2%, but given the poor GDP figures, an undershoot is likely, which would help the EUR/GBP surge, which may take it as high as 0.86 if it hasn't already hit that level by Wednesday. In this respect, Bank of England Governor Andrew Bailey said this week that the central bank's monetary policy committee was equally split in August on whether the basic criteria for a rate increase were fulfilled. Nonetheless, there are increasing signs that the Bank of England is on the verge of withdrawing stimulus, and this will be the case even if inflation falls short of forecasts.

The European Central Bank president, Christine Lagarde, rephrased Margaret Thatcher's quote about inflation: "She's not tapering." Despite the Eurozone's financial crisis recovery, the ECB appears to be easing monetary policy . A shift in the ECB's bond-buying program has also been made, and the ECB has also announced that it will increase its quantitative easing program to a level prior to March 2021. Instead of tapering, Lagarde explains, the long-term extension of asset purchases is a way to promote financial stability in Europe. Bond markets were relieved by the lack of any Fed tapering news, but the markets did not respond strongly. The EUR/USD is floating higher due to the fact that its yield is lower than that of other Euro crosses. This is because interest rates in the Eurozone have fallen faster than those in the United States. A change in currency exchange ranges in the near future is unlikely. In contrast to the EUR/USD and EUR/JPY exchange rates, the EUR/GBP exchange rate has broken away from its July low despite the fact that the rates for the former two currencies appear to be moving away from their summer highs. While the current environment may not be volatile, traders should expect a gradual increase in volatility in the future.

10 thg 9, 2021

Ghi chú

CFTC RULE 4.41

No representation is being made that any account will or is likely to achieve profit or losses similar to those shown. You should be aware that trading Foreign Exchange carries a high level of risk, and you can lose some or all of your investment. The high degree of leverage that is often obtainable in forex trading, can work against you as well as for you. The use of leverage can lead to large losses as well as large gains. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. Don’t trade with money you can’t afford to lose. Manta Fx Technology Group will not be liable or responsible for any loss or damage due to any reason. By simply reading this, you are familiar with these risks and that you are solely responsible for the outcomes of your decisions. We accept no liability whatsoever for any direct or consequential loss arising from the use of this product. It’s to be noted carefully in this respect, that past results are not necessarily indicative of future performance.