This Forex trading analysis article is for 6-15-2017. Yesterday I discussed the possible hawkish outcome from the BOE despite the media talking heads preaching we would see a dovish outcome. We saw a nice move of about 80 pips since the vote was looking bullish for a future rate hike from the BOE.
This morning Sterling popped to its highest in a week against the euro on Thursday after three members of the Bank of England's policy committee surprised financial markets by voting for a rise in interest rates.
Trading below $1.27 before the BoE's decision, the pound leapt by a full cent to $1.2795 after it emerged that Ian McCafferty and Michael Saunders had voted with existing policy hawk Kristin Forbes for higher borrowing costs.
At a time when the BoE has blamed a rise in inflation past its 2 percent target on a weak pound, traders read the split vote as warning that officials could seek to defend the currency with rhetoric or action even as the economy overall slows.
It was also just the latest surprise in a week which has seen the pound slump after British Prime Minister Theresa May lost her parliamentary majority in an early election.
Short sterling contracts for December of this year moved 6 basis points, raising the likelihood attached to a rise in the bank's main interest rates before the end of 2017 to about 30 percent.
I think its important to note that this showed up in our analysis from our new Forex trading strategy that we began this month. Using our new method called MFS our indicators hit this spot on.
I get many emails asking me to make more trade setups, however please understand that the forex day trading room analysis for members must come first as this is a paid service.
Our new forex system is called MFS and it is doing very well.
Here is our chart from today. Stop area should be below todays lows.
- Posted by fx_Trader
- On June 15, 2017
- 0 Comments