Best of the Week
Most Popular
1. US Housing Market House Prices Bull Market Trend Current State - Nadeem_Walayat
2.Gold and Silver End of Week Technical, CoT and Fundamental Status - Gary_Tanashian
3.Stock Market Dow Trend Forecast - April Update - Nadeem_Walayat
4.When Will the Stock Market’s Rally Stop? - Troy_Bombardia
5.Russia and China Intend to Drain the West of Its Gold - MoneyMetals
6.BAIDU (BIDU) - Top 10 Artificial Intelligence Stocks Investing To Profit from AI Mega-trend - Nadeem_Walayat
7.Stop Feeding the Chinese Empire - ‘Belt and Road’ Trojan Horse - Richard_Mills
8.Stock Market US China Trade War Panic! Trend Forecast May 2019 Update - Nadeem_Walayat
9.US China Trade Impasse Threatens US Lithium, Rare Earth Imports - Richard_Mills
10.How to Invest in AI Stocks to Profit from the Machine Intelligence Mega-trend - Nadeem_Walayat
Last 7 days
Gold Golden 'Moment of Truth' Is Upon Us: $1,400-Plus or Not? - 18th June 19
Exceptional Times for Gold Warrant Special Attention - 18th June 19
The Stock Market Has Gone Nowhere and Volume is Low. What’s Next - 18th June 19
Silver Long-Term Trend Analysis - 18th June 19
IBM - Watson Deep Learning - AI Stocks Investing - Video - 18th June 19
Investors are Confident, Bullish and Buying Stocks, but… - 18th June 19
Gold and Silver Reversals – Impossible Not to Notice - 18th June 19
S&P 500 Stuck at 2,900, Still No Clear Direction - 17th June 19
Is Boris set to be the next Conservation leader? - 17th June 19
Clock’s Ticking on Your Chance to Profit from the Yield Curve Inversion - 17th June 19
Stock Market Rally Faltering? - 17th June 19
Johnson Vs Gove Tory Leadership Contest Grudge Match Betfair Betting - 17th June 19
Nasdaq Stock Index Prediction System Is Telling Us A Very Different Story - 17th June 19
King Dollar Rides Higher Creating Pressures On Foreign Economies - 17th June 19
Land Rover Discovery Sport Tailgate Not Working Problems Fix (70) - 17th June 19
Stock Market Outlook: is the S&P today just like 2007 or 2016? - 17th June 19
US China War - Thucydides Trap and gold - 16th June 19
Gold Stocks Bull Upleg Mounting - 16th June 19
Gold Price Seasonal Trend Analysis - Video - 16th June 19
Fethiye Market Fruit, Veg, Spices and Turkish Delight Tourist Shopping - 16th June 19
US Dollar Gold Trend Analysis - 15th June 19
Gold Stocks “Launch” is in Line With Fundamentals - 15th June 19
The Rise of Silver and Major Economic Decline - 15th June 19
Fire Insurance Claims: What Are the Things a Fire Claim Adjuster Does? - 15th June 19
How To Find A Trustworthy Casino? - 15th June 19
Boris Johnson Vs Michael Gove Tory Leadership Grudge Match - Video - 14th June 19
Gold and Silver, Precious Metals: T-Minus 3 Seconds To Liftoff! - 14th June 19
Silver Investing Trend Analysis - Video - 14th June 19
The American Dream Is Alive and Well - in China - 14th June 19
Keeping the Online Gaming Industry in Line - 14th June 19
How Acquisitions Affect Global Stocks - 14th June 19
Please Don’t Buy the Dip in Nvidia or Other Chip Stocks - 14th June 19
A Big Thing in Investor Education is Explainer Videos - 14th June 19
IRAN - The Next American War - 13th June 19
Boris Johnson Vs Michael Gove Tory Leadership Grudge Match Contest - 13th June 19
Top Best VPN Services You Can Choose For Your iPhone - 13th June 19
Tory Leadership Contest Betting Markets Forecast - Betfair - 13th June 19
US Stock Market Setting Up A Pennant Formation - 13th June 19
Which Stocks Will Lead The Cannabis Rebound? - 13th June 19
The Privatization of US Indo-Pacific Vision - Project 2049, Armitage, Budget Ploys and Taiwan Nexus - 12th June 19
Gold Price Breaks to the Upside - 12th June 19
Top Publicly Traded Casino Company Stocks for 2019 - 12th June 19
Silver Investing Trend Analysis - 12th June 19
Why Blue-Chip Dividend Stocks Aren’t as Safe as You Think - 12th June 19
Technical Analysis Shows Aug/Sept Stock Market Top Pattern Should Form - 12th June 19
FTSE 100: A Top European Index - 12th June 19
Gold Surprise! - 11th June 19
How Forex Indicators are Getting Even More Attention in the Market? - 11th June 19
Stock Market Storm Clouds on the Horizon - 11th June 19
Is Your Financial Security Based On A Double Aberration? - 11th June 19
What If Stocks Are Wrong About Interest Rate Cuts? - 11th June 19
US House Prices Yield Curve, Debt, QE4EVER! - 11th June 19
Natural Gas Moves Into Basing Zone - 11th June 19
U.S. Dollar Stall is Good for Commodities - 11th June 19
Fed Running Out of Time and Conventional Weapons - 11th June 19
Trade Wars Propelling Stock Markets to New Highs - 11th June 19
Best Travel Bags for Summer Holidays 2019, Back Sling packs, water proof, money belt, tactical - 11th June 19

Market Oracle FREE Newsletter

Gold Price Trend Forecast Summer 2019

Pound VS Dollar Currency Analysis

Currencies / British Pound May 29, 2007 - 06:47 PM GMT

By: Submissions

Currencies What happened ? We have had an interest rate rise and we have seen an increasing backing for another rise sometime soon.

I am surprised that this has not been bullish for the pound

We have also seen some really benign inflation data coming out in America which would be dollar-negative, so why hasn't there been more pressure on dollar

IG Index is offering a binary bet of the pound hitting the $2 mark again this year, with a spread of 80-85 points. In other words, the bookies think there is an 85 percent chance of it happening.

However, Hughes points out that the psychological element of the $2 pound has been and gone.

We have had the 15-year highs so what we are seeing now with the pound is a bit of profit-taking from our clients he adds.

According to Michael Wright, director of the fixed-odds bookies BetOnMarkets, a lot of ink was wasted covering the £/$ exchange rate (otherwise known as cable) when it ran past the $2 mark early in April.

Having two dollars to the pound is exciting for shoppers, but the level was more of a psychological barrier and had little if any technical resistance surrounding it he says.

Once the bulls got within a close enough distance, it is almost as though fundamental and technical analysis was thrown by the wayside, in exchange for the dash to the two-dollar-to-the-pound finish line

So what has cable done since breaching that mark? The pound has been in retrace mode, having given up a nice chunk of its run-up.


This is unlike its counterpart, the £/$ which is trading still within sight of it's all-time high.

Until fundamentals catch up with April's run up, it is likely that cable will remain in range mode for the time being Wright adds.

Also, with summer approaching, it is more likely that another push will not come for a couple of months.

An added bonus is that there are no US interest rate decisions for the next four weeks, which may take away some of the nasty surprises

So does no movement mean no profit? Not necessarily so, Wright explains.

BetOnMarkets is offering Barrier Range or Expiry Range trades to take advantage of the market not moving much.

With an expiry range trade, you can win if your trade is between pre-set triggers at that time of trade maturity.

It can trade anywhere before it, but as long as it's between two points you set on expiry, you win.

For example, you can set an expiry trade on the £/$ rate closing between $2.04 or $1.95 over the next 30 days. It might trade higher but as long as it closes below $2.04 and above $1.95, you win.

In a barrier range trade, you win if cable doesn't touch your levels at all during the term of trade.

It's somewhat more risky, because you need the cable rates to avoid touching both of your levels for you to win your bet and not merely close between them.

However, it returns are set higher for example you can set a trade on the £/$ rate not touching $2.05 or $1.91 over the next 30 days.

If the next few weeks are as dull as predicted, this could be profitable way to make things interesting Wright concludes.

By: Joanna Frendo

© 2005-2019 - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.

Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules