Trading Video: GBPUSD Extends Bear Trend, Will EURUSD Follow Suit?
• GBPUSD extended a consistent bear trend with its heaviest volume in a year after the BoE's Quarterly
• FX traders are waiting to see if EURUSD may face the same fate with key Eurozone GDP data due today
• The dollar and yen pairs are proving less productive, taking their cues from more active counterparts
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GBPUSD - one of the most liquid majors - extended its reversal to a four-month low on the heaviest volume in a year following the release of the BoE's Quarterly Inflation report. This market response shows what can happen when a particular event risk ignites one of the more important fundamental themes. The same potential energy exists for deeper concerns such as US interest rate expectations and investor sentiment against extreme positioning. One particular theme will be drug into the spotlight in the upcoming session: Eurozone economic health. German and Eurozone GDP figures can change more than growth forecasts; they can alter trends in government bond yields, monetary policy plans and massive capital inflows. We look at the productivity of upcoming event risk and broader trends in today's Trading Video.
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.