Hello Everyone,
I am new to trading and understanding marcos surrounding it.
Could someone please explain why GBP rallied on the news of “DUP opens door to new Brexit deal for Boris Johnson”. The broader picture is that Brexit is not good for Britain then Arlene Foster agreeing with Boris adds to Brexit which should not be ideal for UK/Britain which should make GBP to fall but it rose.
can not add news link here being a new user.
Have a good weekend !
Sounds like the DUP are becoming more willing to compromise on the terms of a Brexit deal with the EU, which makes a no-deal Brexit less likely.
The market is pricing the likelihood of ‘no deal’ Brexit.
The greater the chances of no deal then more selling GBP.
Since the DUP are perceived as blocking a deal then any softening from them decreases the ‘no deal’ chances, hence pound positive.
Btw - that was a Sunday Times story and is being discounted by the DUP.
Arlene Foster states “anonymous sources lead to nonsense stories”.
i wouldn t bother with the fundies that much, for ex every1 was expecting a cheaper euro cos germany is in recession> and so on and look what happened…it got bought up by the institutions, and i ain t seeing it fall for a while, or when the swiss banks lifted the peg on chf(every1 was buying cos it can t go lower then…1.111223).and then what happened, it dropped over 2k points in 1hr putting people out of business. the chart ussually tells u the likelihood of price going up down etc, and if the banks are prepositioning or not etc,so i d stay away from trading the news but use those as catalyst for my bias.
cheers
DE GDP down, EUR down. ECB QE = EUR up.
Thank you for all the responses.