Here in Ireland we
enjoy few things better than a good election campaign and the rash of
candidates’ posters that has sprung up in the cities and towns is good evidence
of this. We have two today – one for local authority members and the other to
elect the representatives we will send to the European parliament.
There is no real evidence
that the European elections will have any major impact on currency exchange
rates but there is another election taking place this coming Sunday that has
the effect, even now, of reining in the appetite for risk among investors. This
is the election for a new president of Ukraine , to replace the ousted
former holder of that office, Victor Yanukovych. Gold, in particular, has been
held at an elevated level largely because of the Ukraine tensions. Recent violent
clashes between government forces and those of the breakaway opposition,
resulting in deaths, have only served to raise the temperature.
Pound still
waits for a new impetus
There are many reasons to be
long the GBPUSD pair but it stubbornly refuses to budge from its position below
resistance at 1.69. A recent short burst to the upside has been completely
reversed and we now await a visit of price to the region at the bottom of the
upward channel, seen on the chart above before we enter a new position.
One thing is sure: We will
not be going short on this pair.
No comments:
Post a Comment