Now, this will be the last bet for me tonite before i retire to my bed. reading up more news, ECB and BOE are both announcing their rates cut forecasts.
This will be very very important for 2 majors - EUR/USD and GBP/USD...WHY ???
Simple, we already know 1 news, FREDDIE MAC big big loss of the day. Based on this news, it is sufficient enough to tell me that USD will be depreciating over next 12hrs. Im pretty sure on this. UNLESS another big news positively comes up. Otherwise, its a down.
Next, experts predict that there will be 0% cut to both EU or England. So, how will the market react ?
"However, once traders see that the Bank of England has chosen to, in fact, leave the Bank Rate unchanged at this meeting, the markets may reduce those rate cut expectations. Thus, there is potential for GBP/USD to rise on Thursday." - taken from DAILYFX.Com
"Currently, overnight index swaps are pricing in a very small chance of a rate cut within the next 12 months, but the recent moves in EUR/USD have more to do with the fact that traders are also pricing in rate increases by the Federal Reserve during the same period. Yet, if Mr. Trichet’s commentary is hawkish enough to convince the markets that they have no intention of reducing rates anytime soon, the euro is likely to subsequently gain." -
taken from DAILYFX.Com
My bet ?...i put it on GBP/USD...A BIG BIG BUY !!!
Next, I intend to leave it for 6hrs...
Now my time reads 117am 2008 07...lets check back again at 7am 2008 07....and see if USD will be pulled down by Freddie Mac news...+ anticipation by investors that BOE will surely announce an unchanged rates cut. Thus, boosting GBP/USD to appreciate.
GOOD NITE !
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