Strategy Video: GBPUSD, Pound Strategy for UK 2Q GDP Report
• The UK 2Q GDP figures are due for release at 8:30 GMT Friday
• This data set is a high-level potential market mover as an important spark for rate expectations
• We perform a scenario analysis on the data's outcome and impact with a mind to preferred pound setups
Market conditions change, and our strategy should reflect those changes. We have coded the DailyFX-Plus strategies for Breakout, Range and Momentum to adapt to these market shifts.
Fundamental analysis requires first recognizing what is important to the market. Interest rate expectations are key to British Pound's rally, and 2Q GDP is a capable catalyst to alter that outlook. For this event risk to be market-moving, it needs to significantly alter expectations - upgrade the timing and pace of rate forecasts or otherwise substantially undermine them. Which scenario would generate the biggest market impact? What Sterling-based pairs are more appealing under the different scenarios? We discuss that in today's Strategy Video.
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.