Why limit orders can be an important tool
8 May, 2019
Yesterday the pound reversed its gains from last Friday losing about 1 cent against the euro from its recent peak. It’s worth noting apart from a brief period in March of this year, that the last time the pound was at these levels against the euro was back in May 2017.
This is a prime example of why limit orders can be an important tool to consider when funds are required to be paid at a date in the future. With the continued pressures of Brexit, opportunities for the pound have been rare and short-lived, Limit Orders and Stop Loss allow clients to take advantage of such spikes in the value of the pound while also limiting downside risk. Please speak to your dedicated consultant or click here for more information on how limit orders can be valuable for you.
As the Brexit debacle continues, Mrs May faces renewed pressure from Tory backbenchers for a firm resignation date. While Theresa May has promised to stand down once a deal is reached, she has not given clarity on her position if no deal is reached. Mrs May was due to meet Sir Graham Brady yesterday amid calls for her resignation and confirmation from Tory associations of a vote of no confidence on 15th June.
Meanwhile, cross-party talks have resumed and we wait to see exactly how Theresa May plans to win over Jeremy Corbyn and what effect any concessions have on large numbers of already disgruntled Tory MP’s. This may seem like progress but be under no illusion, it remains a risky time to hold GBP.
Yesterday the pound lost about 1cent against the Aussie Dollar following better than expected data.
The reserve bank of Australia (RBA) was forecast to reduce interest rates from 1.50% to 1.25%, however, the decision was to keep rates on hold at 1.50%. This surprised markets as confidence was growing for the rate to be cut following disappointing gross domestic product and wages growth figures. The Australian Federal election will be held on 18th May and the winners of the election will no doubt face a challenging economic environment given the RBA’s slashed forecasts.
Australian retail sales m/m came in better than expected at 0.3% as did Trade Balance figures at 4.95.
Today – NZD
Today we have the official bank rate from the Reserve Bank of New Zealand, press conference and monetary policy statement.