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United Kingdom economy has been struggling ever since the financial crisis was triggered there with the bank run on Northern Rock in 2008. The Bank of England had to adjust to an expansive monetary policy in order to avoid further slowdown of the economy. It has introduced the quantitative easing program in 2009 and since March 2009 the interest rates have been at it’s historic record low of 0.5%. On the 9th of July 2015 the Bank of England has kept interest rates and asset purchasing program unchanged at 0.5% and 375 billion pounds respectively. Analysts predict that the earliest date for a rate hike could be August 2016.
GBP/USD
Last week we saw the GBP/EUR drop by 0.98% (biggest weekly drop since June 5th) and the GBP/USD by 0.4% (3rd consecutive weekly drop). But more importantly last week the GBP/USD has broken the upward trend line on which it embarked on at the beginning of April and is currently below it.
BONDS
Last week 10 year UK bonds prices depreciated (yields rose by 0.08 percentage points to 2.08%) amid less demand for safe haven assets due to the improvement in negotiation talks between Greece and it’s creditors. Lower demand was also due to the fact, that the planne…
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ivanbgd avatar
ivanbgd 28 July

nice

al_dcdemo avatar
al_dcdemo 28 July

Useful information and very well written. Great article!

Milian avatar
Milian 28 July

good work!))

piter44 avatar
piter44 29 July

superb +1

Margoshka avatar
Margoshka 30 July

nice

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13/33
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Abstract The US GDP announcements are investigated using a 1 min. chart for spot Euro-Sterling exchange rates. A trading strategy is tested for the GDP/USD to take economic advantage of these relevant releases.The results of each individual tested macroeconomic announcement is described in function of the volatility, the profit and the difference between the forecast and the release values. The results suggest that the strategy respond in a statistically significant manner to the US GDP releasing information reported by the U.S. Bureau of Economic Analysis. The efficiency of the strategy is correlated to the relevant differences between the ex ante and ex post volatility.This study utilises the data for Euro-Sterling provided by the Dukascopy Platform.
Keywords US, GDP, forex strategy, hedging strategy, Cable, GBP/USD. Introduction
Foreign exchange (FX) volatility is correlated to notable macroeconomic announcements as they provide information on the overall state of the countries economy as indicated on the works of Luc Bauwens, Walid Ben Omrane, Pierre Giot.This can result in changes in FX rates as market participants change their positions.The interest in FX volatility pa…
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Daytrader21 avatar

Very well written and I'm very impressed by the high level of information, however there is one thing that this strategy doesn't take in consideration, which is the spread and as rokasltu has already mentioned it can Very well written and I'm, very impressed your strategy can be negatively skewed.

marius24 avatar
marius24 30 Dec.

Hope this strategy will help you to earn some money. Good luck

khalidamassi avatar

seemed useful article, rich with figures and tables,but in real accounts scalping during strong news like US GDP is not easy, due to quick up, down movement it is not warrant that the order will be activated or closed according to your entries.at all, you have strong article and should compete here.

al_dcdemo avatar
al_dcdemo 31 Dec.

As some readers have pointed out, and from own experience, news trading is no easy task for retail traders due to increased slippage and spread. So in my opinion it is absolutely vital to incorporate these two parameters into strategy. Very well written article.

Stix avatar
Stix 4 Jan.

Thank you so much... I thought it was very well written and useful. :) :)

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