News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
GBP/USD
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
More View more
Real Time News
  • The Consumer Price Index, better known by the acronym CPI, is an important economic indicator released on a regular basis by major economies to give a timely glimpse into current growth and inflation levels. Learn how to better understand CPI here: https://t.co/nAa0fHHGbZ https://t.co/Bnih4YvTdg
  • *Reminder: Weekly Strategy Webinar tomorrow morning at 8:30am ET on DailyFX! https://t.co/lxd5fZ5LG7
  • (Weekly Fundy) Crude Oil May Rise as Covid Case Growth Slows. WTI Eyes OPEC Outlook, Evergrande #CrudeOil #WTI #OPEC #Evergrande https://www.dailyfx.com/forex/fundamental/forecast/weekly/title/2021/09/26/Crude-Oil-May-Rise-as-Covid-Case-Growth-Slows-WTI-Eyes-OPEC-Outlook-Evergrande.html?CHID=9&QPID=917702&utm_source=Twitter&utm_medium=Dubrovsky&utm_campaign=twr https://t.co/76e2aGf3p0
  • Recessions can devastate the economy and disrupt the fortunes of individuals, businesses, and investors. But economic decline in the business cycle is inevitable, and your trading can be defined by how you respond to crisis. learn how to prepare here: https://t.co/e4Cnoc1dk0 https://t.co/NhsMS1EY4b
  • We are heading into the final trading days for the month of September and event risk thins out amid the $SPX's rebound. This is what history says for the 39th week of the year and here is my take on the variable factors: https://www.dailyfx.com/forex/video/daily_news_report/2021/09/25/SP-500-and-Dollar-Have-Different-Views-for-Last-Week-of-September.html https://t.co/4OBVmrvI7I
  • Further your forex knowledge and gain insights from our expert analysts on AUD with our free guide, available today: https://www.dailyfx.com/free-trading-guides?ref-author=social#forecastschoices=AUD?QPID=30472&CHID=9 https://t.co/LHJi7CNFmM
  • $EURUSD https://t.co/KZyXX6p2oI
  • The ISM manufacturing index plays an important role in forex trading, with ISM data influencing currency prices globally. Find out about the recent history of ISM data, how to track it, and how to trade its release here: https://t.co/MZtBh8pYG3 https://t.co/1zNf5dpDjU
  • The continuity seen across these volatility cycles is a good thing. Historical precedence offer a blueprint for identifying conditions supportive for a vol-event to occur, and how they may unfold. Deepen your knowledge of historical volatility here: https://t.co/vg7w10la3j https://t.co/z8z6BNudn5
  • #PELOSI SAYS WE ARE GOING TO PASS THE INFRASTRUCTURE BILL THIS WEEK PELOSI SAYS SHE WILL NEVER BRING TO THE HOUSE FLOOR A BILL THAT DOESN'T HAVE THE VOTES TO PASS $USD $SPX $XAUUSD
The Only USD/JPY Catalyst That Matters

The Only USD/JPY Catalyst That Matters

Kathy Lien, Technical Strategist

While steady US monetary policy limits the impact of US news and data on the dollar and major currency counterparts like the yen, the impending appointment of a new Bank of Japan (BoJ) Governor looms especially large.

The US dollar (USD) is trading higher against most major currencies despite weaker-than-expected US data. While the euro has been relatively quiet, other major currencies like the British pound (GBP) and New Zealand dollar (NZD) have fallen sharply on country-specific factors such as dovish Bank of England (BoE) minutes and cautionary comments from the Reserve Bank of New Zealand (RBNZ) about an overvalued NZD.

There were a handful of US economic reports released this morning, but as we have written recently, steady monetary policy in the US limits the impact of US data on the dollar. Housing starts dropped 8.5% in the month of January, which was two times lower than expected, but the disappointment was offset slightly by the upward revision in December.

Building permits, on the other hand, beat expectations, but the 1.8% increase versus the 1.2% forecast, hardly made up for the difference. US housing market numbers tend to be volatile, and while this month's data shows a bump in the road for the sector's recovery, the housing market is still stabilizing, which is why USDJPY shrugged off the news.

Producer prices increased in the month of January by 0.2%, up from a downwardly revised 0.3%. Yet inflationary pressures are falling short of expectations, and at an annualized pace of growth of 1.4%, it shows that contrary to everyone's fears, easy monetary policy has not increased price pressures. The minutes from last month's Federal Open Market Committee (FOMC) meeting will be released later Wednesday afternoon and should have a more significant impact on the dollar than this morning's report.

Meanwhile, USDJPY continues to consolidate, waiting for its next catalyst, which will come from the nomination of a new Bank of Japan (BoJ) Governor. The announcement can come any day now, but it is likely to occur either right before or right after Prime Minister Shinzo Abe returns from his visit to the US early next week.

The short-term reaction in USDJPY will depend on his choice, with Kikuo Iwata being the most dovish candidate, Toshiro Muto being the least dovish, and Haruhiko Kuroda landing somewhere in the middle. However, in the end, we believe that regardless of which candidate Prime Minister Abe chooses, the new Bank of Japan Governor will come out quickly and reaffirm his plans to follow through with reaching the government's 2% inflation forecast, which will require aggressive easing and drive the Japanese yen (JPY) lower once again.

See related: Why Big USD/JPY Move Is “Just a Matter of Time”

By Kathy Lien of BK Asset Management

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES