This how powerful the news move the market ,
“If Iran doesn’t FULLY OPEN, WITHOUT THREAT, the Strait of Hormuz, within 48 HOURS from this exact point in time, the United States of America will hit and obliterate their various POWER PLANTS, STARTING WITH THE BIGGEST ONE FIRST,” Trump wrote in a Saturday post on Truth Social " Information source : Google
Just a few minutes before the DXY drops , Iran's Foreign Minister Abbas Araghchi has maintained that the Strait of Hormuz is "not closed" or "technically open," but is restricted specifically to vessels linked to the United States, Israel, and their allies. Source
As GU trader this also spike GU pair for 160 pips for 1 minutes. (This is what trader say , **Buy the rumor , sell the news ** and its start to repair the market again in same 5 minutes .
While is's not give long term impact for the market since Trumph havent launch their attack yet , but with that spike , it ll cost many trader lost million or their money just because the news .
GU LONG TERM THOUGHT
Personally , i still looking bearish move on GU because UK goverment (GBP) debt has officially crossed the 100% GDP mark this years ,which mean the goverment is now spending more on interest payments than on some major public servies . This will lead there is no room for the tax cuts or infrastructure spending needed to grow the economy. With economy growth , there is low investor to come and invest their money there.
In same time , the Bank of England is currently dilemma to cut rates to save the economy from recession and if they raise rates to fight inflation , they might trigger a housing market collapse and one again this makes institutional investors prefer the USD.
SUMMARY IN GBP (Source info google)
Disclaimer : This is my personal trading journey record .