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April 3, 2020 | What’s Holding Up The Pound?

Jack has over 20 years experience in the currency, equity, and futures arena. He is an investment advisor who has held key positions in brokerage, money management, trading, and research. Jack is founder and president of Black Swan Capital LLC. He was also founder of Ross International Asset Management (specializing in global stock, bond, and currency asset management for retail clients) and General Manager of Plexus Trading (specializing in currency futures and commodities trading).

The euro has been battered over the last four trading days, but the pound has held up nicely against the US dollar (see EUR/GBP chart second below). Why? Not sure. But we do believe the pound is set to turn down and we are looking for at least a couple hundred + pip decline, with scope to go a lot lower should risk return to the credit markets. With today’s dismal US unemployment numbers soaring beyond expectations, it seems Mr. Market is a bit too complacent. Another risk bid into the dollar anyone?

040220 gbp daily.png

EUR/GBP Daily: Note the 61.8% retracement in EUR/GBP. Maybe it is time for the pound to start weakening a bit against the euro and the dollar. Stay tuned.

040220 eurgbp daily.png

 

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April 3rd, 2020

Posted In: Black Swan Currency Currents

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