Jusdrade

My Bias on the currencies - Make use of it

GBP/USD 🇬🇧🇺🇸 | Trade Short 📉 | Entered ✅ This is one I took last week whilst I was away and briefly monitoring price. Gilt yields, with the level of unemployment as it is and has been, are too high and will unwind. Rate hikes would be a policy mistake that would lead to a recession. USD has parred much of the risk premium it had gained. Whilst I do not believe we will see significant and prolonged escalation between US-Iran - I doubt that some escalation won't occur and see risk premium to be priced back in to the USD. The UK is suffering with political instability amid weakening support for the PM after a number of issues and heavy local election losses. Overall, the GBP (and Gilts) simply look unappealing at the minute and none of this seems to be truly priced in to the market. I will be holding this, unless otherwise proven wrong and in the absence of any narrative change, until we see GBP return to 1.30.