Market Commentary..

Hi All,
So today all the news has been released but still we did not see too much volatility in the crosses and they managed to stay within a range. GBP showed good volatility but the fact the good news for GBP was compensated by the good news in USD soon after dampened the effects on the crosses and hence they did not have much volatility to show for it..

Now that the news have got released, what now? Though the rate hike is good for the GBP, there is a widespread opinion that it will have a very bad effect on the British economy in the long term. There is also the feeling that its effects will start appearing towards the end of the year. This is the reason that GBP did not shoot through the roof once the decision was announced. Of course, the rate hike had already been priced in as it was very much expected.. So this is the situation so far and hence though all the news has released, there is still the slight indecision in the market on where to go.

The crosses somehow seem to have stabilised now and now that all the news has released the rate gap between the GBP and JPY has increased even more, i expect the crosses to rise tomorrow. How far this would be true and how far they would go is unknown now. Let us see what happens tomorrow.

Happy Trading!!