This will be a busy week in the FX market place this week with speeches from Gov. Carney on Monday, PM May’s on Tuesday and FED Chair Yellen on Wednesday and Friday. Add to that a raft of market moving releases from around the world and policy and press statements from the BOE , the BOC and the ECB and to cap the week off we the inauguration of the next President of the USA.
Any prize from the top shelf if you can predict where we are going to be at close of play on Friday!
As I suggested in my previous post Watch out on Tuesday!! the GBP has already felt the impact of the week ahead and Tuesday’s event will have to be reconsidered in the wake of where we are this morning. The markets have gapped open on all GBP pairs in anticipation of what May is likely to say on Tuesday so the adage buy the rumour sell the news has to be factored in and opens up the possibility of a GBP bounce if May’s speech is more dovish than anticipated.
Much will depend on where the markets go over the next 24 hours.
All GBP pairs are off the lows set on open and look set to drift sideways until we have clarity following PM may’s speech but we could see spiky trading over the next 24 hours if you are trading the GBP so be warned.