Elections in France and UK: Effect on GBP and EUR? – Forex trading short NZD/USD [Video]
|This week we have general elections in the UK and France.
Expect volatility in EUR and GBP.
Before we look at that, don’t forget to Like, Subscribe and Get Notified on YouTube, Facebook and Instagram.
Today we are seeing mixed strength and weakness in GBP pairs.
On Thursday, the United Kingdom will have a general election and a Labour victory is anticipated.
Many analysts agree that a Labour victory will be good for GBP but we never know until policies are discussed.
Also, if the BoE continues to talk about an Interest Rate cut in August this may drive GBP lower so watch for volatility this summer.
From the technical side, we see a bear run in GBPUSD with price action trying to break this upper trend line.
However, keep in mind that GBP is very susceptible to opinion polls so watch for sudden moves against the trend.
At the end of the week, we will also have the second round of voting in France.
The far-right party won the first round sending EUR higher but there is no guarantee that this will continue.
So, if we look at both currencies, EURGBP, we see a bullish trend channel with price at the upper trend line.
If the stochastic oscillator is correct, then we should see a pullback and a continuation but the elections may have price action going in different directions.
We see another opportunity with NZDUSD in a bear run.
Price action has reached the upper trend line and the stochastic oscillator is overbought and turning down.
However, watch out this week for lots of US economic news.
Including a Fed speech, an FOMC Statement, and a trove of employment figures including the monthly NFPs.
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