Cable continued to slide against the US dollar last Friday, going from an open of 1.30592 to touch a low of 1.29140. Yesterday saw price recover a little after bouncing off the day’s low also at 1.29140 to close above 1.29500.
The downward pressure for this pair looks set to continue as the Federal Reserve chair made hawkish statements last week at the scheduled monetary policy meeting. However, the wording seemed to leave the possibility of a hike only by December, giving the Sterling some relief.
This week will also see a string of major economic data releases that may create increases in volatility if expectations are not met. This Thursday at 01:30pm we can expect Annualized GDP for the US. The forecast is for an increase of 1.2%, slightly higher than last month’s reading of 1.1%.
If the final number falls short of expectations there should be a rally in Sterling, as the market sees weakness in the US economy.
On Friday we will also see the release of Annualized and Quarterly GDP data for the UK. The markets are eager to see these results as so much has been said as to the effect of a Brexit on the British economy. The general consensus is for GDP for both Annualized and Quarterly to remain unchanged at 2.2% and 0.60% respectively.
If you feel that the Pound may recover in price upon the release of these two pieces of data, then all you need to do is buy this pair with Deal Cancellation protection. This feature allows you to take a position and set a maximum stop loss, which if hit during the first hour, will only cost you the premium you paid to buy the Deal Cancellation protection.
Deal Cancellation gives you the option to close a trade, during 1 hour, losing no more than the premium you paid, while allowing you to gain from any positive price movement.
The screenshot below, with the trade screen, shows that to buy £28,000, would cost €20.31 to gain Deal Cancellation protection.