It’s been far too long since the last time I updated this blog. It’s high time I get back in the swing of things(i.e. posting here more regularly). Hope you’re all having a good trading week so far, 3 more days to go! 🙂
Today, I wanted to share with you all my pick for Chart of the Day which is EUR/GBP. Though there were some significant moves from other currency pairs, when looking at the overall picture(trend) and doing my analysis, I decided that EUR/GBP was my so-called ‘favorite’ of the bunch. All of the GBP crosses moved well, which was due to the economic data that was released in the wee hours of the morning. UK inflation rate dropped to 1.6% from 1.8% in July. It is the goal of the Bank of England(BoE) to have inflation at 2.0% so, anything below that equals bad news for the GBP. Like I’ve written seemingly countless times before, keeping track of economic news is so important as the sentiment of the market can change in a blink of a eye at times. The market was in a rolling trend until the news came out so, yeah, always be aware of economic data releases.
Ok, so let us take a look at the chart:
The pair rose a little over 100 pips over the course of a seven-hour period. It may not seem to be as extravagant a move as a few other pairs like GBP/USD or GBP/JPY but the pip value of EUR/GBP is roughly $1.65 per pip, which I think is a pretty awesome trade for a 100-pip move.
So, any questions..comments for me? Feel free to leave a comment here or send me an email anytime and I’ll get back to you as soon as humanly possible. 🙂 Have a fabulous day!