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Traders’ discussion: BoE Stimulus and Forex market

In today’s live session two of AtoZ Forex professional traders have covered BoE Stimilus and Forex market.

As a part of the session we have covered fundamental market developments having impact on the Forex market and technical analysis on selected tradable instruments.

Brexit impact

Brexit vote has been a historic single planned event that has changed the course of European union as well as the great Britain.

During the course of last three weeks, the biggest Brexit impact on Financial markets globally has been based on the instability it has created since David Cameron resigned and Boris Jonson left the Brexit rally.

However, now that Theresa May is becoming the next UK Prime Minister financial markets have started to discount expected STABILITY in the country, hence the one of the reasons behind the recent GBP rally.

Another reason behind GBP rally is also due to the commentary from BOE Governor Carney’s commentary that the BOE is standing ready to do whatever it takes. Significance of the BOE Stimulus signal is based on the structure that Governor Carney in general is known to stand neutral for stimulus programs. With his speech that BOE Stimulus is coming up soon, investors and market participants have moved towards re-positioning their GBP based operations.

The biggest BOE Stimulus impact is expected to take place this week when the BOE will be announcing their rate cut. At the moment market has discounted that BOE Stimulus is based on 25 base points rate cut, however we can not rule out a possible 50 base point rate cut, which would then be probably depreciate GBP valuation and bring another round of GBP bears into the market.

Fidelis Capital markets

S&P500 2007 signals?

Another topic discussed during the “BoE Stimulus and Forex market ” session was S&P500 signalling similarities with its move prior to the 2008 Financial Crisis. Especially the technical structure of the Index, where it made a relative lower low earlier just before a spike is an indication that there are large transactions taking place likely by different central banks (e.g. SNB)

Similar moves were noted just before the 2008 Financial crisis, which ended up the world entering to one of its worst economic crisis.

For detailed info watch the video recording of the webinar and don’t forget to register for the upcoming Free live Forex trainings.