Fundamental Analysis
The BOE is one of the most hawkish central bank right now. Here's the reasons and the important events of previous weeks:
Labour market is getting stronger with more new workers and less unemployed. Price and demand for houses are rising to new records; the new average house price hits a all time record high at 262,954 Pound. According to ANZ, the Pound is still undervalued and a rate hike could take place in the next year or so. The UK is part of the countries with the most performing vaccine roll out and wants to start a booster-shot program. All of this creates a better optimism sentiment in the market and investor could be more attracted to buy the Pound in the next weeks and months if the situation continues to get better.
On the other hand, the BoJ is one of the most dovish banks out there. Here's the main reason: BoJ is always dovish lol but also;
Economic growth is slowing since consumers do not spend money and production is slowing down. All of this is due to the growing in new covid-19 cases and due to the extended emergency state in major prefectures of Japan. Also, a lot of uncertainty caused by the fact that PM Suga will leave its functions. There are growing risks for Japan exports resulting from bottlenecks in the Asian industrial / factory sector.
One central bank is hawkish. One central bank is dovish. Pair their currencies together, choose a technical entry price and swing it for 1000+ pips.
Technical Analysis
Formation of an institutional trend by definition on the daily time frame. I will position myself for the 5th wave of the trend. I chose this entry with a combination of trend lines, key levels, fib levels and market sentiment analysis.
Market Sentiment Analysis
Institutions: Have buying orders at 150.50 and at 150.10. Lower than that, they will be in too much draw down to stay on the buying side.
Retail noobs: Panic selling on lower time frames or buying with too tight stop losses.
The BOE is one of the most hawkish central bank right now. Here's the reasons and the important events of previous weeks:
Labour market is getting stronger with more new workers and less unemployed. Price and demand for houses are rising to new records; the new average house price hits a all time record high at 262,954 Pound. According to ANZ, the Pound is still undervalued and a rate hike could take place in the next year or so. The UK is part of the countries with the most performing vaccine roll out and wants to start a booster-shot program. All of this creates a better optimism sentiment in the market and investor could be more attracted to buy the Pound in the next weeks and months if the situation continues to get better.
On the other hand, the BoJ is one of the most dovish banks out there. Here's the main reason: BoJ is always dovish lol but also;
Economic growth is slowing since consumers do not spend money and production is slowing down. All of this is due to the growing in new covid-19 cases and due to the extended emergency state in major prefectures of Japan. Also, a lot of uncertainty caused by the fact that PM Suga will leave its functions. There are growing risks for Japan exports resulting from bottlenecks in the Asian industrial / factory sector.
One central bank is hawkish. One central bank is dovish. Pair their currencies together, choose a technical entry price and swing it for 1000+ pips.
Technical Analysis
Formation of an institutional trend by definition on the daily time frame. I will position myself for the 5th wave of the trend. I chose this entry with a combination of trend lines, key levels, fib levels and market sentiment analysis.
Market Sentiment Analysis
Institutions: Have buying orders at 150.50 and at 150.10. Lower than that, they will be in too much draw down to stay on the buying side.
Retail noobs: Panic selling on lower time frames or buying with too tight stop losses.