Expect low volume spiking when trading any Pound based pair.

Expect low volume spiking when trading any Pound based pair.

Good Morning Traders.
Back in the seat and in no real hurry to trade so far today.
I notice that the Euro$ is 25 pips higher than in my last blog on the 15th June. With the Brexit negotiations now under way I think we can expect a lot of stagnation or small ranging choppy periods as well as huge moves (same with the Pound of course) as the political tug-o-war continues.  It looks as though the Euro$  “consolidation” is “squeezing”  with support at the mighty 1.1100 and resistance at 1.1250 to the upside.

Whilst my overall “outlook” remains pretty much the same I am in no real hurry to trade the Euro$ until the “break-out” of the aforementioned range.

Things could get a little lively shortly as “Super Mario” of the ECB speaks this evening at 18:00 and tomorrow morning at 09:00 UK time.
I am hoping that’s when we get a clue as to where the Euro is headed according to the ECB at least.

The Pound has taken the expected “battering” as Theresa May’s weakened government struggles. The Cable (£/$) is just 30 pips lower than when I wrote my last blog. Sure it has whipped around but only in a 150 pip range  since then.
This is the new norm guys – get used to it.

The Pound will chop “a lot” over the next few years but when it runs it will run very quickly. Again my expectations remain unchanged however that view could change at a moments notice depending on the Brexit negotiations.

Expect low volume spiking when trading any Pound based pair.

Its trumpet blowing time as the Oil did as predicted and then some, hitting a low of $42 before rebounding to where it is today at $ 43.30
I am getting ready to “ride the wave” getting back on the recent trend to go short again but expecting chop between here and $43.00.
If and when it gets through $43.00 I am staring at a target of  $40.00 as in previous posts. Now, do take on board there are a lot of people that do not want to see that and it will be bumpy.

Gold, well it tried again didn’t it and then this morning slipped, tripped and fell. See the blog on 15th June as nothing has changed.

In conclusion – my view remains the same for everything but my focus right now has to be Oil as the European currencies will be all over the place.

Keep it real and catch up tomorrow.

Clive

P.S – Both the Bank of England and the Fed Governor’s speak tomorrow.

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About Author

Clive Arneil

Clive Arneil worked for major brokers for over 20 years trading most instruments in the Foreign Exchange markets as well as Derivatives. Brokered deals on behalf of some of the worlds largest banks including Barclays, Citibank, UBS, Nat West and the Bank of England. Worked mainly in the UK but also in Switzerland, Germany and the U.S. Retired from the Money Market at the age of 40 and worked as a financial data feed specialist supplying market data to Banks, Brokers and Spread-Betting companies. Still trading and teaching people the skills required to master today’s volatile markets.