Forex EUR+GBP Daily Video, August 17, 2022

[Sive Morten]

Good morning,

Today we consider as EUR as GBP setups. Retail Sales release should become the major driver and some data weakness could let both currencies to complete short-term upside targets. Stronger Sales data supposedly pushes them back to major lows...

 

[soul rebel]

surge in UK yields.... 2yr yields in the UK jump up to 2.43%, it's highest since 2008.
Could it support probability of price spike to complete 1.2405 target and possibly further?

 

[Brett Reynolds]

Yesterday i saw nicely looking 1 hr Pin Bar right at $1.20 level which is area i had mentioned as support. I took long position yesterday at $1.2050..and moved my Stop to 'Breakeven' last night.
Today we have 'higher than expected Inflation but market drops back 70 pips!
My stops look like they will be Hit and i will be out of trade at Breakeven...BUT i still believe that 'Daily close' below $1.20 area is required to 'negate' Bullish context. The Head & Shoulders right could even spike down to be as low as $1.1930 area...but again very clear PA signal is required to Buy.!

 

[Sive Morten]

surge in UK yields.... 2yr yields in the UK jump up to 2.43%, it's highest since 2008.
Could it support probability of price spike to complete 1.2405 target and possibly further?

Difficult to say Viresh, although theoretically you're right. Rising yields support the value of the currency. But, currently BoE draws bad perspectives for economy conditions, overall situation is deteriorating fast, so, the spike in the yields with inflation expectations around 13% (officially!!!) still keep GBP assets' investing in deep negative yield. This might be just response on the recent HICP data, or re-assessment of BoE forecasts...