Finally, some positive news regarding the UK pound – Sterling has climbed to its highest point since September last year, hitting a value of US$1.3146. Our traders are remaining cautious of this result, but it shows how the markets shift from news results.
Why the pound has climbed
The US Federal Reserve released a statement last night saying that it was taking a more cautious outlook in light of inflation movements. Pundits are now thinking that any additional rate hikes will be delayed until next year. This allowed the pound to gain new ground, hitting the new high for the year.
What our traders are saying
The Learn to Trade team are still taking a cautious look on Sterling – There are too many balls in the air for them to expect the pound to stabilise and form a trend. But while the specifics may still be less than favourable, this news shows just how the markets can react to statements and news reports.
Good news and bad news
While the news that the Federal Reserve is being more cautious might be bad for the US$, the impact of this news can be positive for Forex traders. News reports shift the markets, whether it’s bad news (Fed caution) or good news (pound climbs against dollar). This means that bad news is good news, from a certain point of view.
Making the news work for you
Since news has such an impact on the markets, it’s surprising that most Forex software doesn’t take it into account. But our partners, SmartCharts, know the value of news and have made it a centrepiece of the platform. It will analyse report release times and warn you if a currency is likely to shift, whether positively or negatively, before you place a trade.
Learn to Trade
SmartCharts is only available through Learn to Trade’s Forex education programmes. If you’d like to see just how powerful SmartCharts is, come along to one of our free Forex workshops. They’re held across the UK.