The HSBC Chart
The chart of the FTSE 100 and the Euro Stoxx 50 has shown some changes recently. It provides an insight into the pricing trends and the sensitivity of the market to
political news.
HSBC is a behemoth of a financial institution with an asset base of over US$295 billion as of March 31, 2015. It is a jack of all trades, and master of all trades in that it has branches in every state and territory, but it's not just the locals that get the short end of the stick. The group's HQ in London is the hub of all trades, and the company has over 25,000 employees. HSBC also has a presence in Asia, Middle East and North Africa. As of March 31, the HSBC group had some of the lowest operating costs in the industry. In the US, HSBC has a number of retail and commercial bank branches across the country, with the exception of Texas. There is also a slew of insurance offerings through the HSBC Insurance Agency. And with a hefty share of the US$4 trillion money market sector, there's no shortage of customers to cater to. HSBC's best days may have been a long time ago, but a quick scan of the company's most recent annual report makes clear that the firm has a solid foundation in the United States. The organization boasts of a well-rounded customer base that spans the continent, and the country's top cities. Moreover, there are no fewer than two fabled HSBC Bank locations in the state of New York.
FTSE100 i Euro Stoxx 50 osiagaly nowe rekordowe poziomy
The European Stock Market is in a corrective pattern. While the euro has been a major winner this year, the Stoxx 600 isn't quite out of the woods. The FTSE 100, a key benchmark for consumer companies such as Reckitt Benckiser Group Plc and Unilever Plc, has fallen more than 14% this year. It's also lost the title of the only major European stock index that's been on the rise for 2022.
Despite its woes, the UK is still seen as a safe haven. But as the economy slows, the pound is in the crosshairs of a Bank of England that's turned more cautious. As a result, investors are starting to sell off equities.
The FTSE 100 hasn't made a huge leap forward this year, but a new survey suggests it may be inching closer to its first annual gain in years. A survey compiled by Bloomberg finds the most optimistic forecasts for the index point to a mostly flat performance over the next few months.
While the FTSE 100 hasn't hit its highest level in almost a year, it's still well above its pre-war highs. For the second time this year, the euro has reached a one-month high against the pound.
While the FTSE 100 has taken a minor hit this week, the Stoxx 600 isn't completely out of the woods. The benchmark has dropped to its lowest levels since January, on fears that the economy is in recession. Still, analysts expect the euro to hold up against the dollar, with some strategists suggesting the currency may outperform higher beta currencies.
However, despite the optimism surrounding lower interest rates, the Stoxx 600 remains depressed. At its current level, it trades at a nearly 30 percent discount to the S&P 500.
Wielkiej Brytanii pobudzilo 17-proc. spadek funta wobec dolara i przeszlo 20-proc.
In the last week the euro has gained over 1% against the pound. Analysts predict that this pair will rise to at least three percent by the end of 2023. Geoff Yu, a senior currency strategist at the Bank of New York Mellon, says the pound is under pressure as the Bank of England has turned more cautious. He says the BoE will not hike rates as much as the markets are expecting.
The pound was hit hard after the mini-budget, falling to record lows. The pound slid 19% against the dollar over the past year. But the pound has bounced back in recent weeks, with some high street currency exchange offices selling dollars for more than a pound.
As well as a fall in the value of the pound, the energy crisis has taken its toll. A weak pound will lead to higher prices of imports, especially food, and could exacerbate the energy crisis.
The pound is also under pressure from the European Central Bank, which amplifies its rhetoric on inflation. It aims to drive down inflation by increasing interest rates. During its meeting, the ECB raised its key interest rate by 50 basis points.
With the pound now under pressure, traders are looking for the Bank of England to blink first. HSBC executives said they believe the bank should announce a program of rzadowych obligacies at its listopad meeting.
One of the analysts predicting the euro will outperform the pound is Adam Cole, head of currency strategy at RBC. He says the pound could continue to flog in the future, but it may not outperform other higher beta currencies.
While the pound is at a record low, it is still not out of the woods. The energy crisis has hit the pound hard, and it is set to get worse.
Chart provides insight into pricing trends
A GBP/USD chart enables you to analyze the price movement between the British pound and the US dollar over a period of time. In the past, the GBP/USD has traded between horizontal support and resistance levels. It has been in a long-term trading range since May of 2016. This chart offers you valuable information for forecasting long-term trends.
GBP/USD has been trending down since May of 2021. The currency exchange rate has declined during several periods of uncertainty. During the Russia-Ukraine conflict, the US dollar became a safe haven. Moreover, the Fed raised interest rates. While the UK has voted for a hard Brexit, there is still a lot of uncertainty in the market. Hence, the currency exchange rate will continue to fluctuate.
When the price moves above the 34-period exponential moving average (EMA), you can buy the currency pair. In addition, the volume chart will reflect the interest of buyers and sellers. Adding an indicator like Admirals Symbol Info will further help you identify trends in the exchange rate. You can customize the indicator by dragging and dropping it on the chart.
Aside from examining the previous price action cycles, traders also use trading indicators to get a better understanding of the market. Several popular strategies for GBP/USD trading exist. Nevertheless, it is important to keep the process simple.
As a rule, avoid chasing results to avoid making poor trade decisions. If you want to get a complete view of the market, you can always take advantage of a Bloomberg GBP/USD chart. By doing so, you can find out the key elements of pricing trends and thereby make a better trading decision. Ultimately, this chart will provide you with all the relevant information you need to get the edge in the market.
Olga Steiner
https://financeworld.io/!!!Trading Signals And Hedge Fund Asset Management Expert!!! --- Olga is an expert in the financial market, the stock market, and she also advises businessmen on all financial issues.