How to Trade the Bank of England Meeting
The Bank of England's monetary policy committee is meeting this week, and if they do what this strategist expects, he's got a trade for you.
Tired of trading the euro?
Todd Gordon, co-head of research and trading at Aspen Trading Group, has another idea for you.
"I think there are better opportunities to be long dollars in a risk aversion market," he told CNBC's Scott Wapner. In particular, Gordon has his eye on the Bank of England's monetary policy committee meeting later this week.
Quantitative easing has taken hold in Britain, and with the country in a double-dip recession, Gordon, along with other market experts, expects it to continue. "That's going to pressure" the British pound, he says.
So Gordon wants to wait for a bounce, and then sell the pound against the dollar at 1.5400. He recommends setting a stop at 1.5500 and looking for a move to 1.5100.
You can watch the discussion on the video.
Tune In: CNBC's "Money in Motion Currency Trading" airs on Fridays at 5:30pm and repeats on Saturdays at 7pm.
Learn more: The essential vocabulary for currency trading is on Key Terms Dictionary. Top currency strategies are broken down for you in Currency Class.
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