Well done to those that have completed week 2 of the final round of the SIC ReTrader competition. There is only two more weeks to go before we will find out who is the overall champion of the last 3-months and it’s close at the top!
WHAT DID YOU TRADE THIS WEEK?
You can run but you can’t hide from the impact of Donald Trump. This time you were on the FX desk trading a combination of comments from the US President alongside the release of important US economic data.
WHAT HAPPENED IN THE SESSION?
An incredibly busy day in terms of fundamental news with the initial drop in the pair shortly after the release of the 9.30am data which showed the slowest pace of borrowing in the UK since May 2015, with the FT noting that foreign investors were selling gilts at the fastest pace since immediately after the EU referendum.
Prices then started to recover following the circulation of a Guardian article which cited sources as saying the government may make a concession in its white paper in reporting back to parliament on a regular basis when negotiations with Europe get underway. This was a GBP positive given that the consensus is that pursuing a hard Brexit would become more difficult for Theresa May with the more involvement parliamentary officials are given.
Comments then followed from President Trump which caused an immediate weakening of the USD helping accelerate the move further in GBP/USD given its very protectionist connotations.
Finally, the miss in expectations in both the US Chicago PMI and the Conference Board’s Consumer Confidence reading saw GBP/USD rise all the way into the European close.
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