Trading Plan – Monday 28th September 2020: GBP boosted by UK jawboning
The GBP has received a significant boost from positive noises coming out of the UK camp regarding this week’s Brexit trade talks. The GBP is currently showing the biggest move upwards in the group of G10 currencies. This is something to consider when I look at trading opportunities later today.
Risk sentiment is indecisive as I write, as it so often is at the start of the US session on a Monday. US equity indices are moving up, continuing Friday’s recovery.
GOLD is moving sideways at the new low created by last week’s collapse. Could be ripe for a move up.
The ECB are talking up the possible need to intervene in the currency if the recent appreciation threatens their inflation target. This is something we are hearing more often from members of the ECB and they do not do this off the cuff. It is all choreographed. The issue from a trading perspective is that we may well see further EUR strength in the short term.
Finally, we have the first US Presidential debate, scheduled for 9pm Eastern on Tuesday. This has a large potential to move the market.
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