Hello everyone,
Today we had the interest rates for both the EUR and GBP. The surprise came from Her Majesty’s land as the rates were lowered from 5.75% to 5.50% against the analysts’ forecasts.
But what’s been even more surprising as far as I am concerned is the market’s reaction to the news: confusing and contradictory. You know, the interest rates is the most important bullet in the monthly economic calendar and a deviated outcome usually spurs a vigorous 100+ pip move. However, upon checking all different GBP-crosses, I have noticed to my surprise that in some cases the GBP depreciated from the news (as it should), while on most cases it’s remained totally flat-lined (?), to say nothing about the solid rally we have seen on GBPJPY (!!!). So, let me see if I got this right Hector: the Bank of England lowers the rates by surprise and the GBPJPY rockets up?!? strange, isn’t it? I must have missed something because it really makes no sense.
This is the reason as of why I tend to not mess with Fundamentals: the market sometimes reacts very weirdly to them!
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6 December, 11:02 pm
You are right. Perhaps it was known to some people, as pound have lost about 600 pips the last 5-6 days
John
7 December, 12:50 am
Hector - Plain and simple, the market is rigged. The big boys control the price perfectly, and all the book writers will tell you its all ramdom. Yea right, trillions of dollars “randomly” floating around. You’re smart to trade the market exactly the way you
do. Swipe a little $ out of the big boys pockets. Graet work! keep it up, we’re all watching.
8 December, 10:23 pm
Hi Hector,
I just have a general question, I am about to enroll in your course but just wanted to know how many students you have had enrolled since its inception?
Thanks,
-Jam.
8 December, 10:33 pm
Hmmm I’d need to count them to know for sure, but quite a few dozens I guess? I couldn’t really tell off the tip of my mind.