Sep 26, 2019
Trade USD and the GBP
The value of the US dollar (USD) has been increasing and currently, the EUR/USD pair is back trading at below 1.1. In addition, the USD is impacting other forex pairs, including the GBP/USD, which is trading below 1.24 and the AUD/USD, which is trading below 0.68. In addition, the Dollar index is trading high at around 98.95. As a result of the strengthening USD, forex traders and investors are taking advantage of the many trading opportunities.
In terms of economic events which could impact the USD, if the US-China trade war escalates and market tensions increase, this will push the USD higher as investors often buy this currency as a ‘safe haven.’ Also, if the markets are positive, global traders and investors often buy US stocks, which means they will convert their local currencies into US dollars. Based on this, it is evident that the USD will rise on both positive and negative news. If other countries do not show any improvement in their economies, this trend could continue.
In other financial news, within the last 24 hours, the British pound (GBP) fell by more than 100 pips. This comes as a result of the UK Prime Minister, Boris Johnson, who has been persistent in trying to push for Brexit to take place on the 31st of October. Another event that is likely to impact the GBP is when Mark Carney, from the Bank of England, speaks in Frankfurt at 13:45 GMT today. As a result, short term GBP positions could become very attractive.