Learn how to Trade the Spring Statement!
Platinum Analysts have predicted that we shall revisit the 1.5000 levels by end of December 2018 and today after the Spring statement is delivered we could see a nice move towards the upside.
Chancellor Philip Hammond is expected to deliver a spring Statement based on better than expected economic figures.
THE SPRING STATEMENT
The Chancellor of the Exchequer, Philip Hammond, has announced that the government will respond to the forecast from the Office for Budget Responsibility (OBR) in a Spring Statement on Tuesday 13 March 2018.
Following the Chancellor’s announcement at Autumn Statement 2016, there will now only be one major fiscal event in each year, held in the Autumn.
Yesterday the Currency markets were quiet with the pound only up by 0.25% against the euro and around 0.40% against the dollar. Being a trader, it is good to assess the currency markets from both a fundamental and technical perspective before we decide to take the trade. Today we expect the Chancellor to deliver a message based on stronger economic footing compared to that of November.
Richard Flax, CIO of MF Stated “the Spring Statement is likely to be delivered with a positive spin following stabilising economic growth and a cut in public borrowing forecasts for 2017/18.
Platinum Analysts believe that the economy is in a better than expected state post-referendum and that the government is in a stronger position than the last 15 months. When we look at the UK economic growth for 2017 we hit 1.7% compared to the 1.5% predicted by the OBR.
As a trader we should go into this currency market news event with a positive bias as you know fundamentals always come first in online forex trading compared to technicals.
Being optimistic we should not forget that it has been a very difficult time for the UK with so much uncertainty and this also affects inflow of Investments into the economy and with this comes a breakdown in consumer confidence.
NEWS EVENTS TIME AND EXPECTATIONS
Annual Budget Release:
Tuesday, 11:30. The Chancellor of the Exchequer Phillip Hammond will present the new UK budget.
This event, also known as the Spring Statement, will consist of new forecasts for the economy. In the event, growth forecasts were below 2% annually for all of the years in the forecast’s horizon.
The reason we have chosen to trade this news post-event is any upgrade or downgrade could move the pound drastically. We should be ready to take advantage of a 200-pip trade if this is the case.
The money hours for the 14th of March 2018 starts at 07:00 GMT and once you book your appointment you shall get an SMS to confirm your booking to learn how to trade this Forex News Event. This event is free on acceptance of consultation
FOREX TRADING STRATEGIES FOR TRADING THE SPRING STATEMENT:
This is a risk event and we suggest you use no more than 1% of the risk capital of your overall currency trading account for your personal forex trading purposes.
Important Pointers for Fx traders:
- Know the ranges of your currency pairs.
- Know the critical times of when to stop forex trading
- Do not revenge trade
- Do not trade GBP/USD between 16:00 and 17:00.
- If you are new to forex trading take out 50% of your balance to protect impulsive behavior and risk.
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I hope you found this Forex Blog informative and it assists you in trading the Currency Markets with confidence.
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