Search

Client support: Phone: (+357) 22314160

FX & CFD trading involves significant risk

News

Show news:


06.09.2016 06:36

Credit Suisse Trade Of The Week: Buy GBP/USD

"With a light data schedule for the US week ahead, we see potential for the GBP to rally the most among G10 currencies against the USD.

Firstly, the market is only beginning to acknowledge that the UK economic data may not come in as weakly as expected. Good data prints in services PMI, IP and house prices following other positive prints in manufacturing PMI and retail sales should continue to alleviate market concerns regarding the Brexit result and lead to an asymmetrically large rally in GBP crosses.

This leads directly to the second point - that market positioning is still extremely short and still has some way to unwind.

Finally, while the headline US payrolls number was not particularly weak, slow labor wage growth and a shortened work week should be sufficient (in combination with other weak data prints such as ISM and US political risks) to keep the Fed on hold and progressively price a Sep hike out of the picture over the week.

The main risks to the trade are if the upcoming data print unexpectedly worse, and if UK political developments signal a consensus forming around a "hard Brexit" policy cocktail,"

As a technical trade, CS booked profit today on its GBP/USD long from 1.3064 at 1.3355.

Copyright © 2016 Credit Suisse, eFXnews™

Market Focus

  • The eurozone started the third quarter on a solid footing, according to PMI survey data
  • Earnings Season in U.S.: Major Reports of the Week
  • German private sector output growth slowed for the second month running in July
  • ECB's Mersch says as conditions normalise, it is unlikely that uncoventional policies will remain necessary
July 2017
  • 2017
  • 2016
  • 2015
  • 2014
  • 2013
  • 2012
  • 2011
  • 2010
  • 2009
  • 2008
  • 2007
  • 2006
  • 2005
  • 2004
  • 2003
  • 2002

Quotes

All posted material is a marketing communication solely for informational purposes and reliance on this may lead to loss. Past performance is not a reliable indicator of future results. Please read our full disclaimer.

To maximize our visitors browsing experience TeleTrade uses cookies in our web services. By continuing to browse this site you agree to our use of cookies. If you disagree, you may change your browser settings at any time. Read more

  • © 2011-2017 TeleTrade-DJ International Consulting Ltd

    TeleTrade-DJ International Consulting Ltd is registered as a Cyprus Investment Firm (CIF) under registration number HE272810 and licensed by the Cyprus Securities and Exchange Commission (CySEC) under license number 158/11.

    The company operates in accordance with Markets in Financial Instruments Directive (MiFID).

  • The information on this website is for informational purposes only. All the services and information provided have been obtained from sources deemed to be reliable. TeleTrade-DJ International Consulting Ltd ("TeleTrade") and/or any third-party information providers provide the services and information without warranty of any kind. By using this information and services you agree that under no circumstances shall TeleTrade have any liability to any person or entity for any loss or damage in whole or part caused by reliance on such information and services.

  • TeleTrade cooperates with SafeCharge Limited, which is an electronic money institution authorized and regulated by the Central Bank of Cyprus and is a principal member of MasterCard Europe and Visa Europe. We also cooperate with Moneybookers and Neteller, which offer electronic e-wallet services authorized and regulated by the Financial Conduct Authority.

    Please read our full Terms of Use.

  • To maximize our visitors browsing experience TeleTrade uses cookies in our web services. By continuing to browse this site you agree to our use of cookies. If you disagree, you may change your browser settings at any time. Read more

    TeleTrade-DJ International Consulting Ltd currently does not provide its services to residents or nationals of the USA, and also doesn't provide retail Forex and CFD accounts to residents or nationals of Belgium.

Connect with Us
Share on
social networks
Online
consultant
Request a callback
Top Page