ISM PMI data comes out today as well as chairmen Powell is speaking later on this afternoon. As we know, price is going to be very volatile so risk management is key today! i will be holding GBPUSD through the news as Bullish movements are still valid for reaching the target.
Fundamental Analysis:
GBPUSD
currency pair reveals some interesting contrasts between the United Kingdom and the United States. The UK has a notably higher inflation rate of 6.7% compared to the US rate of 3.7%, which could put downward pressure on the GBP. In terms of GDP growth, the UK lags behind with a 0.4% annual rate, while the US shows more robust growth at 2.6%. Interest rates are fairly close, with the UK at 5.25% and the US at 5.5%, suggesting that neither currency has a distinct advantage in attracting foreign capital based on interest rates alone. The trade balance shows both countries running a deficit, but the UK's deficit as a percentage of GDP is higher, which could weaken the GBP. Unemployment rates are relatively low in both countries, but slightly lower in the US at 3.8% compared to the UK's 4.3%, indicating a slightly stronger labor market in the US. Lastly, consumer confidence is markedly lower in the UK with a score of -21, compared to the US score of 67.7, which could impact domestic spending and ultimately influence the currency pair. Overall, these indicators suggest that the USD may have a slight fundamental edge over the GBP in the near term.
Risk Management is key when the market is this volatile. Make sure you have Stop Losses in place as the market can be unpredictable during high volatility.
Fundamental Analysis:
GBPUSD
currency pair reveals some interesting contrasts between the United Kingdom and the United States. The UK has a notably higher inflation rate of 6.7% compared to the US rate of 3.7%, which could put downward pressure on the GBP. In terms of GDP growth, the UK lags behind with a 0.4% annual rate, while the US shows more robust growth at 2.6%. Interest rates are fairly close, with the UK at 5.25% and the US at 5.5%, suggesting that neither currency has a distinct advantage in attracting foreign capital based on interest rates alone. The trade balance shows both countries running a deficit, but the UK's deficit as a percentage of GDP is higher, which could weaken the GBP. Unemployment rates are relatively low in both countries, but slightly lower in the US at 3.8% compared to the UK's 4.3%, indicating a slightly stronger labor market in the US. Lastly, consumer confidence is markedly lower in the UK with a score of -21, compared to the US score of 67.7, which could impact domestic spending and ultimately influence the currency pair. Overall, these indicators suggest that the USD may have a slight fundamental edge over the GBP in the near term.
Risk Management is key when the market is this volatile. Make sure you have Stop Losses in place as the market can be unpredictable during high volatility.
Trade closed: stop reached
i was stopped out of this position but my overall anaysis was correct.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.