Staying Short EURGBP

Short EURGBP
Staying short EURGBP and waiting for Brexit fears to pass.

As stated earlier, We were considering adding to our short EURGBP position. During the morning hours of North America Forex trading we added to the short at the following prices below:

 

SOLD -10,000 EUR/GBP @.78766

SOLD -10,000 EUR/GBP @.78759

We are keeping a tight stop on the entire position at .796. We have a target at .725.  These are the types of trades we like to enter because of the reward to risk is greater than four.

The ECB continues to hedge its intent to add liquidity.  Draghi said back in April the ECB, “will continue to monitor closely the evolution of the outlook for price stability and, if warranted to achieve its objective, will act by using all the instruments available within its mandate”. It’s only a matter of time before it’s their turn to press “ctr + p”.  Earlier this month more signs of appeared that the ECB is seen more data that supports the region is entering a deflationary environment.

A Brexit premium of 6% is baked into the current levels.

The market has priced in the declining economic environment in the UK but has not turned it sites on the negative news out of the EU.

 

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