Allianz Global Investors has initiated short positions in the British pound against the euro, following other asset managers who are turning pessimistic on the prospects of the UK economy.
The currency has been the worst performer among the G10 so far this year. Economic headwinds remain given the threat of the resurging and mutating coronavirus. After the Brexit deal was announced the limited move to the upside was a tell-tale sign that many investment managers believe it's too early to be optimistic.
While some uncertainty has been lifted regarding the deal, investors are still concerned the trade deal doesn’t extend to services or the City of London which are key income areas for the UK. This has helped analysts to forecast that the Bank of England will move towards negative interest rates sometime this year.
Did you know that you can speculate on the direction of the British pound against the euro using Contracts for Difference (CFDs)? This allows you to potentially profit from both rising and falling markets. Get started with a free demo trading account today!
How to trade EURGBP with Admiral Markets UK Ltd
If you are feeling bullish or bearish on the EURGBP currency pair you can speculate on the direction using CFDs. To get started, follow these five simple steps:
- Log in to your existing Admiral Markets trading account, or open a live or demo trading account in just a few minutes.
- Click Trade on your chosen account which will direct you to the Admiral Markets MetaTrader Web Platform.
- Type in EURGBP and choose your instrument at the bottom of the Market Watch search box and then drag the symbol onto the chart.
- Use the one-click trading feature on the chart or right-click on select Trading -> New Order.
- Choose your entry, stop loss and target levels and position size (volume) and then confirm the trade.
Source: Admiral Markets MetaTrader 5 Web, EURGBP, Weekly - Data range: Jul 27, 2014, to Jan 6, 2020, performed on Jan 6, 2020, at 7:07 am GMT. Please note: Past performance is not a reliable indicator of future results.
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