Fixed Odds Trading Strategy

What is the forex strategy in the £$ going to be in the next few weeks? In the Profit Vortex membership we have been trading successfully in this market.

The markets are expecting further interest rate increases in the UK. This will persist in the short-term and the BOE will remain concerned over the pressure on inflation. There are already signs of a slowdown in the economy and as higher interest rates and falling disposable incomes start to bite, this will create continuing deterioration in consumer-related areas. The BOE may use their scope to assess the situation with a possible delay in a further rate increase. If this happens then there will be a drop off in support for Sterling which will probably trigger some sort of correction.

The BOE minutes recorded a 6-3 vote for an interest rate increase in July. The minutes suggested that the bank may be cautious on a further early increase in rates.

The dollar has remained under pressure during the week with ongoing worries over the US economy. Mortgage difficulties are a cause for concern as is inflation. But overall, the US market sentiment remains strong. If the labour market can provide good figures then confidence in the economy will stabilise.

It is now possible that the $ will have a modest recovery over the next few weeks.

That means that the £ will not continue to even greater highs against the $ and may not in the near future breach the 2.06 level. It will come close but I think that we are close to to the top now.

This means that our forex trading strategy in the £$ is now set for the next couple of weeks.

Graham

Profit Vortex