I'm beginning to see signs that GBP has hit bottom and is waiting for an event to trigger the upwards trend.
There was almost no change in price on GBPUSD, after a worse than expected GDP yesterday and as well as terrible realized sales numbers today. And to top it off, the markets were in risk aversion mode, where all other currencies lost considerably against USD and JPY. Just compare GBPUSD with EURUSD and GBPJPY with EURJPY and see for yourself.
In my opinion, this is the best indicator of market sentiment, and this to me points to bear exhaustion.
Right now, BoE is winding back quantitative easing, so keep an eye on how the economy will react over the next few weeks.
It may not take off until after risk appetite has taken hold, but there's a chance that it could start moving before the other currencies.
There was almost no change in price on GBPUSD, after a worse than expected GDP yesterday and as well as terrible realized sales numbers today. And to top it off, the markets were in risk aversion mode, where all other currencies lost considerably against USD and JPY. Just compare GBPUSD with EURUSD and GBPJPY with EURJPY and see for yourself.
In my opinion, this is the best indicator of market sentiment, and this to me points to bear exhaustion.
Right now, BoE is winding back quantitative easing, so keep an eye on how the economy will react over the next few weeks.
It may not take off until after risk appetite has taken hold, but there's a chance that it could start moving before the other currencies.
-Razorjack