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06/02/2014: Update on my shorts on EUR/USD and GBP/USD


I am running a slight profit on both currently.

I have around 6 pips on EUR/USD and 25 pips on GBP/USD.

Both trades have become marooned in the market caution before both ECB and Bank of England give their monetary policy updates but I will run these positions over the rate decisions.

The Bank of England is not expected to move on rates or QE but could update forward guidance, although I expect this is far more likely to come with the Quarterly Inflation Report next Wednesday.  Therefore expect another non-event from the Bank of England in half an hour.

The ECB is more interesting as there is the chance of a cut to its main Refinancing Rate (by 15 bps to 0.10%).  Although a rate cut is possible, the vast majority of consensus does not expect a cut. Declining inflation in the peripheral Eurozone is actually seen by the ECB as beneficial in the attempt to improve competitiveness, while liquidity conditions in the Eurozone have improved slightly in recent weeks.


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At Hantec Markets Ltd we provide an execution only service. Any opinions expressed by analyst Richard Perry should not be construed as investment advice or an investment recommendation. This report does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. Forex and CFDs are leveraged products which can result in losses greater than your initial deposit. Therefore you should only speculate with money that you can afford to lose. Please ensure you fully understand the risks involved, seeking independent advice if necessary prior to entering into such transactions.