It’s the day that we didn’t know was coming this time two months ago, but here we are – the UK snap General Election of 2017. The final polls predicted a Tory victory, but we’ll know for certain tonight.
What’s happening with the pound?
In a word? Nothing. Sterling has been fairly calm today, even managing to ignore some disappointing new growth forecasts.
But even with this stability, the guys and girls on our trading floor are saying the same thing – Now is not the time to trade on the pound. So, what should you be looking out for?
Is it time to get crude?
The price of crude oil recovered slightly after an earlier dip but is still hovering close to technical levels. This could be due to the 3.3 million barrel surge in the United States’ stockpile, as opposed to the forecast 3.5 million barrel decline.
While oil may be on the verge of tanking, there’s been a spike in cocoa prices, seeing a 4 per cent rise recently. This could be due to the re-emergence of swollen shoot disease in Ghana, the second largest producer of cocoa.
The euro took a bit of a hit against the New Zealand dollar, even though ECB President Mario Draghi announced that “…inflation will converge with [the ECB’s] objectives”, predicting 1.9 per cent growth in 2017.
Learning to read Forex trends and news
As you can see, news events and announcements can play a big part in Forex movements. And they’re not always the movements that you’d expect. While there is an opportunity to make it big with a correct prediction of a rise or fall in the pound, the volatility of the trade has most professionals steering clear.
At Learn to Trade, we teach you how to read not just the markets, but also the news reports and announcements that will produce results. We hold free forex seminars across the UK, find one near you now.