Short covering is necessary in order to close an open short position. A short position will be profitable if it is covered at a lower price than the stock was sold short, and vice versa if the.
Daily Swing Chart Forecast
Fawad Razaqzada August 24, 9: Choppy price action continues inside wide ranges ahead of the Jackson Hole Symposium and amid lack of any significant news. After falling sharply yesterday, stock markets have bounced back again, while safe haven gold has fallen slightly out of favour. In FX markets, short covering has boosted the pound while the safe haven yen has weakened a tad. Unfortunately the markets are likely to remain directionless for another session at least until we hear from the heads of key central banks, including the Federal Reserve Chairwoman Janet Yellen and European Central Bank President Mario Draghi on Friday.
It looks like the softness of the pound and Brexit uncertainty is having undesired impact on household and business confidence. Consumer spending dropped to a two and a half year low of just 0.
Thus a rise in government spending prevented GDP from being revised downwards from 0. Nonetheless the pound actually managed to catch a bid after falling sharply in recent days. The gains for the pound could very well be short-lived as sentiment is quite bearish at the moment thanks to a dovish Bank of England.
But as far as the cable is concerned, it was testing a key short-term resistance area between 1. Business Inventories Climb 0. Consumer Sentiment Index - September 14, Dollar traders key in on jobs data. Dollar Climbs Ahead Of U. Consumer Sentiment Index 5 hours ago.
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BREAKING DOWN 'Short Covering'
EUR/USD Forex Technical Analysis – Aggressive Short-covering Driving Prices Higher Based on the early price action, the direction of the EUR/USD is likely to be determined by trader reaction to. AUD/USD Forex Technical Analysis – Short-Covering Rally Could Fuel Move into – Based on Friday’s close at and the momentum created by the closing price reversal bottom, the. 8 days ago · Gold Edges Higher On Short Covering Posted by: Insta Forex in Forex Analysis 1 min ago Gold prices edged higher on Thursday as a weaker dollar helped spur some short covering.