Morning all
Straight into it today…
GBPUSD
If GBPUSD were a TV programme it would be the Eurovision song contest – the worst recorded tradable rate in over 35 years!
Before going into why…if you are USD seller – once you have finished doing cartwheels, sell every last dollar you have! Why? For the first time, GBPUSD is now lower than GBPEUR. Once GBPUSD starts trading in line with GBPEUR again it’ll start trickling higher again through into the 1.20’s, 1.30 now a distant memory. How long we will stay in this rut is really dependant on our economy and whether the Bank Of England takes a more aggressive approach to the impending interest rate hikes. When it rains…
GBPEUR
EUR under huge pressure at the moment, which is why GBPEUR is still trading at palatable rates vs a horrendous Pound. Putting the huge recession aside that is currently happening [as well] over in Europe, Russia said late over the weekend that the Nord Stream pipeline that transfers gas to Germany will be shut for 3 days of ‘maintenance’ at the end of the month. The sharp rise in natural gas prices and uncertainty about the outlook are likely reasons for the renewed EUR weakness and something that could continue to push the EUR lower for the time being.
Here if you wish to discuss further…