Elections in France and UK: Effect on GBP & EUR? Forex Trading Short NZDUSD.
Elections in France and UK: Effect on GBP & EUR? Forex Trading Short NZDUSD.
In today’s GCI Market Outlook, let’s take a look at Forex Trading on NZDUSD, EURUSD, EURGBP and GBPUSD.
This week we have general elections in the UK and France.
Expect volatility in EUR and GBP.
Today we are seeing mixed strength and weakness in GBP pairs.
On Thursday, the United Kingdom will have a general election and a Labour victory is anticipated.
Many analysts agree that a Labour victory will be good for GBP but we never know until policies are discussed.
Also, if the BoE continues to talk about an Interest Rate cut in August this may drive GBP lower so watch for volatility this summer.
From the technical side, we see a bear run in GBPUSD with price action trying to break this upper trend line.
However, keep in mind that GBP is very susceptible to opinion polls so watch for sudden moves against the trend.
At the end of the week, we will also have the second round of voting in France.
The far-right party won the first round sending EUR higher but there is no guarantee that this will continue.
So, if we look at both currencies, EURGBP, we see a bullish trend channel with price at the upper trend line.
If the stochastic oscillator is correct, then we should see a pullback and a continuation but the elections may have price action going in different directions.
We see another opportunity with NZDUSD in a bear run.
Price action has reached the upper trend line and the stochastic oscillator is overbought and turning down.
However, watch out this week for lots of US economic news.
Including a Fed speech, an FOMC Statement, and a trove of employment figures including the monthly NFPs.
That’s all for now.
CFDs and FX are leveraged products and your capital may be at risk.
Latest Analysis
- S&P500 in Ascending Triangle. Trading Long on WTI Crude Oil? CAD Interest Rate in Focus. Yesterday 03:52 AM
- Forex Trading Gold (XAUUSD) at Record Highs. WTI Crude Oil Rally on Middle East Tensions. October 18, 2024 06:51 AM
- Forex Trading on EUR Interest Rates. Trading Long on WTI Crude Oil? Silver (XAGUSD) in Symmetrical Pennant. October 15, 2024 04:17 AM
- Forex Trading on NZDUSD. US Fed Looking at Inflation this Week. USD Strongest Currency. October 10, 2024 09:55 AM
- Gold (XAUUSD) Consolidating. Trading Silver (XAGUSD) in an Ascending Triangle. Forex Trading on NZDUSD. October 07, 2024 06:07 AM
- JPY Weakness Coming to an End? Forex Trading WTI on Middle East Conflict. Gold (XAUUSD) in Symmetrical Pennant. October 03, 2024 05:23 AM
- Forex Trading Long on Silver (XAGUSD). Technicals may Signal a Weaker Yen. S&P500 Trying to Break Descending Triangle. September 30, 2024 04:57 AM
- Forex Trading Gold (XAUUSD) at Record Levels. SNB Interest Rate Falls: More to Come! September 26, 2024 10:09 AM
- Forex Trading BitCoin Coming Soon to GCI Trading! Trading Short USDJPY. SNB Interest Rate this Week. September 23, 2024 04:55 AM
- Forex Trading on US Interest Rates. The Fed Catches us off Guard. Trading a Reversal on Natural Gas? September 20, 2024 09:10 AM
Open an account in minutes
Trade on our award-winning platforms with ultra-fast and ultra-secure execution.
OPEN AN ACCOUNT