With Britain’s Prime Minister Cameron walking out of the EU Summit talks last week and withdrawing Britain’s support for their latest agreement, it could be interesting to see whether money flows (potentially out of commodities and equities) into the British pound sterling, or the US $, or both, if the Euro continues to weaken.

Below is a Daily chart of GBP/USD. The British Pound was weaker today than the US $, but has paused at trendline support.

Below is a Daily chart of EUR/GBP. The Euro was weaker today than the British Pound, but has also paused at trendline support.

Below is a Daily chart of EUR/USD. The Euro was weaker today than the US $, but has also paused at a confluence of price and trendline support.

All in all, the Euro has been weaker than the US $ and the British Pound recently…on the currency side of things, it appears that money has been flowing into the US $ and the Pound, with more flowing into the US $. The 5-day 5-minute percentage comparison chart below confirms this relationship…something to watch for in terms of either a continuation or a reversal of money flow back into the Euro.

 
http://strawberryblondesmarketsummary.blogspot.com/
 

You Might Like

  • South Korea and its impact on the US stock market.

    South Korea: The Hidden Driver of US Tech Volatility

  • Learn to trade within your means.

    Stop Trying to Hit Home Runs: Start Trading Within Your Means

  • Avoiding traps on stock breakout plays.

    How to Trade Breakouts Without Getting Trapped