Difficult to give an honest, accurate answer as I tend not to use stops when I trade these volatile pairs.
In essence there’s a trade off between playing safe and getting stopped out a lot, or watching your trade go well into the red before turning back up.
With 200-300 pips per day movement as the norm, and twice that at times, where would you put a stop?
I do take trades on other pairs using 2% risk, but not on these.
Some important upcoming news events worth watching.
Tuesday we have RBA meeting minutes followed by BoJ rates decision. Later in the day it’s UK CPI, then US retail sales.
Wednesday its EU CPI, then US CPI.
Thursday its US jobless figures, then the Fed rate hike decision.
GBP/AUD has refused to go past the last swing high. I don’t really trade GBP/NZD since in the school of pipsology it is among the absurd pairs. seeing this data, I will give it a try.
GbpNzd is a very volatile pair but the spread can get very wide, really has to be a long term trade as scalping is difficult with big spreads
The election of Corbyn as leader of the Labour party seems to be at least part of the reason behind the general slump of the pound today, with many analysts citing his anti European stance as a concern that could lead to a Brexit.
My own feeling is that this has been greatly exaggerated, given that as many as 80 Labour MPs are opposed to him and that the general feeling among the UK press is that he is unelectable.
This being the case, it would strengthen the Conservative party to have a divided opposition for the current term in office and the likely further term that would follow it.
A generally dovish RBA minutes statement dragged the AUD down against most other currencies. Disappointing economic data and concerns over a China slowdown eroded much of Tuesdays gains
UK CPI numbers later today are now key to immediate movement of GbpAud
Consumer prices were flat on the year in the U.K. in August, dragged lower by a fall in the cost of fuel and weaker gains in clothing prices than a year earlier, official figures showed Tuesday. Bank of England officials have signaled they expect annual inflation to hover around zero for another couple of months before picking up again towards the year-end. Markets expect the BOE to begin gently raising interest rates in the second half of next year. ([email protected])
GBP/AUD entered Position #2: Long at 2.1419. Order triggered while I slept.
Current Status: Position #1: +50 pips, Position #2: +150 pips.
Stops are in place to lock in profits.
Nice move, im in this myself although not as cheap as you got.
Seems to be moving on the back of good uk data and likelihood of early 2016 rate hike in uk
I’ll probably be stopped out pretty soon. I’m happy to get out with some profit and sit on the sideline until after the USA rate decision tomorrow.
Stopped out on GBP/AUD.
Position 1: +30 pips
Position 2: +120 pips
Hello everyone! Nice to see that bit of bullish sprint from GBP/NZD today…
I will be watching the NZ GDP release tonight, but my sights are firmly on the Federal Reserve and Chairwoman Yellen’s press conference tomorrow…
Yellens painted herself into a bit if a corner when she said, in June, that she " expect it will be appropriate at some point later this year to begin to take the first step to raise the federal funds rate". There’s not much of the year left if they don’t move tomorrow
I won’t be surprized if they go to 2020 without raising rates.
-Adrian
Fxstreet set out 4 possible scenarios for today’s Fed hike (or not)
Scenarios 1 and 4 are, they feel, bullish for Gbp as the UK is the next bet for a hike after the Fed
Scenario 3 is also bullish for Gbp, as it would be the only remaining bright spot and could further benefit from pressure on commodity linked currencies as investors seek risk aversion.
Scenario 2 pretty much leaves us as we are on Gbp, although disappointment could play against the dollar.
What do you think?
GbpAud +200 pips today already
GbpNzd +250 pips today
Stop moved into profit ahead of Fed later today
Nice one, Eddie!
It looks like today will be a make-or-break for GBP/NZD’s 2.45 level…
F
I reckon it 3/1 for no change in the rate
