Today’s superstar was undoubtedly the British pound. Although it is far from it’s pre-Brexit highs, the GBP/USD has gained over 400 pips in 2 days. I personally thought the move was ridiculous since the BoE are scheduled to talk on the 14th. There’s been warning of a possible rate cut but I guess the market thinks otherwise? The euro has fallen against the dollar, but I guess the markets are balancing out the fall after the post-Brexit trauma.
I spent most of my day scratching my head on pound’s strength. I was able to successfully short scalp EUR/USD but I just couldn’t gain pips on shorting the GBP/USD. There should be fears of a rate cut by the BoE and I can’t really see this rally sustaining itself. I’m holding a short GBP/USD overnight in the hopes that this rally was over bought. I see the pound weakening tomorrow and on the 13th as we head closer to the BoE meeting.