This is a performance killer especially in sterling this week. "S" stands for…
Shame… and the list goes on.
Take the NEW out of N E W S and you might as well make your judgments based on the wisdom of SpongeBob Squarepants.
If everybody is trading off the same old news you have agreement. With broad agreement you get inertia. No movement, sluggish trading and the belief that everyone in the market is as smart as everyone else.
In the last few weeks this agreement has been highlighted in many news sources.
There was plenty of airtime for views like…
Euro - Sterling is going to 1.
The pound against the dollar is going to dive beneath 1.4000.
When there is no one left to buy the same old news it is time to sell the consensus. Euro sterling is off over two big figures from its highs and Sterling against the dollar has recovered two big figures from its lows.
Sterling against the dollar remains above a 25 up trend while euro-sterling is still beneath a downtrend from 2009.
Euro-Sterling beneath 0.8550 will target 0.8445. It is this last level which is key, in setting the scene for a further sterling recovery on the cross. In cable a break above 1.5250/1.5300 would see the rate re-enter a range, which up until the last few weeks, had protected the downside of the market since 20011.