Talking Points:
- GBP/USD stuck in neutral zone; GBP/JPY more bullish.
- USD/JPY breaking out of two-plus month long consolidation.
- See the November forex seasonality report that forecasts US Dollar strength.
"Remember, remember, the fifth of November." Oh, I see your confusion - it also happens to be Guy Fawkes Day over in Britain. But it happens to be a different British calendar event, the Bank of England's "Super Thursday," that will be worth remembering in the days ahead. The simultaneous release of the central bank's policy decision, meeting minutes, and Quarterly Inflation Report should bring a wave of volatility - and both bullish and bearish opportunities - across the GBP-crosses.
Of course, heading into a major event as such, it's important to keep control over your trading strategy's/strategies' risk parameters; a surge in volatility could provide stressful for overleveraged traders; we know that an overcommitment of capital (too much leverage) is one of the three major mistakes retail traders make. We'll be covering GBP-crosses and more in the BoE "Super Thursday" webinar starting at 06:45 EDT/11:45 GMT today.
If you can't make the webinar, see the above video for technical considerations in GBP/JPY, GBP/USD, EUR/GBP, as well as in the USDOLLAR Index, EUR/USD, and USD/JPY.
Read more: November Forex Seasonality Foresees EUR/USD Drop, S&P 500 Rally
--- Written by Christopher Vecchio, Currency Strategist
To contact Christopher Vecchio, e-mail cvecchio@dailyfx.com
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