Say Mark Carney was to raise the UK’s interest rates from its current level 0.5 to 1%, what would everyone’s play be?
This isn’t me trying to steal ideas I am just trying to home in on some key fundamentals.
Of course going long GBP but against what? Would an announcement as significant as this warrant going long all the pairs at least short term or?..
Thanks
Well it would probably never jump a whole 50 basis points at once (not when its this low). If it did then go long on any pair with GBPXXX and short on XXXGBP. Normally the EURGBP is the most susceptible to news spikes.
Long is the call. But look for possible spikes before the move. I am also not sure they will increase 50 basis points suddenly
As others have suggested, would go long on any pair with GBP…FWIW, check out some of the news analysis on this, including Blmberg
I agree with what has already been said, go long in pairs where the GBP is the base currency and short where it is the quote currency.