Strategy Video: GBPUSD Top Volatility Pick, EURCHF Top Potential
Talking Points:
• Scheduled event risk in the coming week and key fundamental suggests GBPUSD is a top volatility pick
• A plunge in rate expectations for the Pound will amplify interest in US and UK CPI Tuesday
• Yet, volatility aside, EURCHF may have the better trade backdrop behind it
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Volatility contributes to trade potential. However, that isn't the only aspect we should be looking for when evaluating trades. Given the market's interest in rate forecasts and the sharp change in BoE expectations this past week, GBPUSD stands as one of the most potent oportunities for activity and trend development through the immediate future. UK and US inflation readings will alter what matters most to the Cable - their timetable for the inevitable policy shift. Yet, when we look for setups that do not need the immediate satisfaction of volatility, a very different pair rises to the top: EURCHF. We look at both GBPUSD and EURCHF for their market drivers - as well as EURUSD for a blend of both words - in this weekend Strategy Video.
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