Brexit catching up with all sectors of the UK economy
It´s all getting too predictable now; put the UK economic calendar on your schedule, wait until a piece of data is released, then sell the GBP/USD either immediately after the economic data disappoints or wait for a small bounce and then sell it. There´s no other outcome from the UK, at least in the short term. Everything is going to bee gloomy and every economic report will be another piece of the puzzle which shows the entire shape of the UK economy after the Brexit vote.
The manufacturing production and the trade balance for July were just released and they both missed the expectations. The manufacturing production was supposed to remain flat in July but it contracted by 0.3%. The goods trade balance deficit was about 3 billion Pound higher than expected and last month's deficit was revised higher too.
This jump presents us a good selling opportunity
Looks like all the sectors of the UK economy are under Brexit boot. It´s just staggering how quickly they fell into contraction. It shows you just how fast the markets can react, and remember, this is the real economy. Now imagine how fast virtual markets can move. Oh wait, in the forex market GBP/USD lost 20 cents in a few hours after the Brexit vote. Anyway, GBP/USD jumped a little higher after the initial relief that the number weren´t worse, pulling EUR/USD with it. We reckon that this is a good opportunity to open a sell forex signal in EUR/USD.
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