GBP/USD..market might manage a weekly close at the precise point we were at on the day of the referendum result. Chart from Analyst, Nicole Elliott – Investors Chronicle.

 

GBP/USD SHORT TERM TRADER: Looking to re-buy depending on where we settle this week and this month.

GBP/USD POSITION TAKER: Long at 1.3730; stop below 1.4000. Holding out for my second target around 1.4600.

Dollar comments all round Strong dollar policy abandoned

On Wednesday US Treasury secretary Steven Mnuchin abandoned decades of use of the ‘strong dollar policy’ mantra stating the obvious: a weak dollar is good for US trade and therefore benefits the nation over the long term. Yesterday at the ECB’s rate-setting meeting president Mario Draghi spat out these words: ‘’the exchange rate has moved…due to exogenous reasons that have to do with communication. Not by the ECB, but by someone else. This someone else’s communication does not comply with the agreed terms of reference.’’ Later in the day President Trump told CNBC, ‘’the dollar is going to get stronger and stronger and ultimately I want to see a strong dollar’’.

In an interview on CNBC television yesterday the governor of the Bank of Canada, Stephen Poloz, said bitcoin trading was ‘gambling’ and that his organisation was looking into cryptocurrency regulation. Echoing current thinking he added that blockchain technology was a ‘true piece of genius’.

Financial & Political Commentary

 

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