Two days ago we were giving a brief overview of the situation after the announcement of the vote in the UK Parliament. As predicted, the pound keeps rolling down. The latest news pack came out today.
GBP/USD chart of the day
The level of retail sales turned out to be much worse than analysts’ expectations. The most interesting question is not even why sales are falling. But why do analysts keep making such a big mistake when they see what is going on?
At the moment the pair pound/dollar fell just below 1.30.
It is very entertaining. Climbing to 1.35 and taking the stops 10-12 points higher, then dropping without any pullbacks to 1.30 and taking the next stops 10-12 points lower. The example can be recorded in trading books, in the chapter of trading on news and expectations.
What else happened on Thursday?
The euro-dollar pair shows a slight rebound. Some short-term trend is out of the question, the movement is chaotic.
On the other hand, the Swiss franc once again made us happy. Against the backdrop of falling pound sterling, investors continue to flee in the direction of Swiss assets. Apparently, future economic turmoil is expected not only by the UK, but also affects the EU countries, as the main trading partner. Big investors are trying to protect themselves in advance, before the new year.
Meanwhile, we continue our predicted Christmas rally in the American stock market. Investors do not pay attention to any negative, even voting on the impeachment of Donald Trump! Another classic situation, worthy of a trading textbook on the topic “The trend is our friend”.
What is waiting for us today?
02.30 Decision of the National Bank of China on interest rate
10.30 UK Gross Domestic Product data 3Q.
14.30 U.S. Gross Domestic Product data 3Q.
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