Price now
1.9864

Trading Tactics

Important data at 9:30 (GMT) GDP

Gross Domestic Product (GDP) measures the total value of all goods and services produced by the economy. A rising trend has a positive effect on the nation's currency. GDP is the broadest measure of activity and the primary gauge of the economy's health. To foreign investors, a strong economy is viewed favorably because it spurs investment opportunities in the domestic stock and bond markets. More importantly, the central bank is more likely to raise interest rates in the face of a strong and growing economy. The combination of these effects can have a large impact on the demand for the nation's currency.

The minutes of May BOE interest rate meeting that showed an unanimously vote to raise the benchmark rate and a twelve year record high in the manufacturing price index spur speculation for tow more raises in the benchmark rate. ``Markets may price in more hikes, the next one in the third quarter and one in the fourth quarter,'' said Armin Mekelburg, a Munich-based currency strategist at UniCredit Markets & Investment Banking.

We will place the following orders:

Sell GBPUSD at the break of 1.9851, targeting 1.9677, stop loss at 1.9965

Buy GBPUSD at break of 1.9906, targeting 2.000, stop loss at 1.9714