At 11 AM the UK chancellor reversed the mini-budget…
The media says the GBP/USD spiked. But at the same time Euro/USD also spiked.
The spike was tiny. So what is going on here?
I think the GBP/USD spike looked small scale because it was anticipated, so price was rising earlier and continued to rise steadily subsequently.
There is often overlap between the EUR and GBP - the respective economies are highly inter-dependent.
same happened with LIz resignation. GBP had a spike, so did Eur. I assume other European premiers did not resign…
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But could have, should have…
Let us view it as collateral damage or infection.
same complain have been founding from couple of forums .
I find a pattern of analysis in the weather forecast:
Weatherman says it is going to rain??
If it rained he is right. If it doesn’t he can explain it.
Which pattern? Can you please elaborate? Thanks in Advance!
NFP is a labor indicator in the US economy… However, it’s release affects all assets in the world…
It’s just how the markets works… everything is connected. Dont trade news
But where is common sense here. NFP is US news and affects USD relative to all others. So does UK news affects GBP relative to all others.
My question is why business people claim the UK premiere resignation caused a spike in GBP/USD pair when it did same to Eur/USD pair.
I can answer myself:
- Reporting of GBP spike in relation to Liz Truss resignation is wrong
- Other European premiers resigned or may resign soon
- price algorithm is a mystery in the hands of some manipulators. (this is the most
likely explanation).
Today same issue happened with change of UK premiere to Rishi Sunak.
GBP/USD went sharply up. Ok understood,
EUR/USD followed it hand in hand. Why?
So a change of GBP passes to EUR and hence a change of EUR would pass to GBP.
This is really gambling now at algorithm level.
I assume there is one Rishi Sunak with no doubles…
Over the last year, apart from the most recent month, the GBP/USD and EUR/USD have been highly correlated with each other. The two charts have been almost impossible to distinguish without labels.
That says a lot about algorithm level manipulation for political reasons. The world economy is at their mercy. Sad indeed.
If forex was being manipulated I would expect it to work better.
I would say eating the mangoes doesn’t count the kernels, I guess if a spike has happened is a good sign that’s the only thing you have to look at.
Everyone in Europe needs to Sell Euros before buying pounds…
IMO… you’re asking the wrong questions… This is how the markets works… news Will affect all currencies more or less… just accept the fact.