I love the smell of pips in the morning!
Early today the Mark Carney and BOE friends dropped bombshells in the markets. Not only are they expecting the economic slack to be absorbed at a faster rate than initially expected, but they also said that they’re surprised that not many analysts are expecting a rate hike this year. Could they be any clearer about their hawkishnes?
Surprisingly, the pound FELL across the board at the report’s release. My buddies Pipcrawler and Cyclopip believe it’s because traders are now bracing for the next potential market mover – the FOMC minutes. Word around the hood is that Janet Yellen would give Carney a run for his pips in terms of economic optimism.
In any case, I have decided to close my position for a 107-pip gain equivalent to 0.53% of my account ahead of the FOMC statement. Not bad for a couple days’ worth of trade! I’m still fundamentally bullish on the pound (who wouldn’t be?) so I’ll also watch closely for another chance to enter a long trade.
Let me know if you have ideas on potential entry opportunities!
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Thanks and have a great trading day!