Well, we don’t want to rub it in or anything, but we’d probably be remiss if we didn’t mention that just six hours after Bloomberg’s Mark Cudmore described GBPUSD as “a market that can no longer fall on bad news,” sterling fell (albeit with a noticeable delay) on “news.”
To wit:
- 7:24: THERESA MAY WILL TRIGGER ARTICLE 50 NEXT WEDNESDAY: CITYAM
- 8:12: GBP/USD DROPS TO SESSION LOW OF 1.2367; BIDS AT 1.2350: TRADER
As Bloomberg writes, “GBP/USD reverses earlier gains as it drops below 1.2400 handle; stops below the figure and 1.2380 triggered as New York dollar demand emerged.”
Now obviously, this will probably move all over the place as the session unfolds and this isn’t really “news” per se, but the lesson is: never, ever say “this can no longer fall on bad news.”
