DislikedThe massive % of trade between the euro and the gbp is a factor
When people say that the USD is due for a sell off, that must mean the dollar index of which the euro is an important part
If the trade links twixt GBP/euro are so strong. might the euro hold GBP up ?
I don't like to think of GBP in isolation as a dollar sell off could leave GBP where it is now...
Too many imponderables of course which is why people day trade and forget all other factors except immediate price action. Perhaps that's all we can doIgnored
Obviously the sentiment in the market will soon focus on the dollar, which will once again start driving this pair. But with equities looking over-extended, and sterling not responding in its usual manner, it doesn't bode well for this pair, should we witness a decent correction in risk assets.
Lots of imponderables, yes. But it pays to have an view on the bigger picture, particularly when you're also an investor, and not just a day-trader.