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
More View more
Real Time News
  • What is your forex trading style? Take the quiz and find out: https://t.co/YY3ePT7Yu8 https://t.co/GFx3b1W0OD
  • RBNZ's Hawkesby talking "considered steps" when setting monetary policy, leaning towards 25bps - With money markets pricing in 31bps worth of tightening at the October meeting. Room for disappointment. https://t.co/C7DHnPIeuU https://t.co/K2835aP57Z
  • Gold has plunged nearly 5% off the Monthly high with the sell-off now probing key weekly support here at 1738/47- looking for a pivot here with the Fed interest rate decision on tap. Get your $XAUUSD market update from @MBForex here:https://t.co/Vnxi4143uT https://t.co/zTpqrFIZfk
  • RBNZ: - We have benefitted from a robust rebound in China, our main trading partner - The interruption to the economy's supply side has lasted longer than expected
  • RBNZ: - Vaccination program has aided a stronger-than-expected rebound in the global economy - Demand for our exports has fared better than previous recessions
  • Between the volatile risk trend picture at the moment along with the Fed rate decision and expected 100bp hike from the Brazilian central bank both on Wednesday, $USDBRL is going to be a very interesting pair to watch...
  • RT @EricBalchunas: $SPY traded more than the Top 5 stocks combined. Just when you think $SPY is fading away like an aging legend you realiz…
  • Bitcoin sharply lower on the day, but well off session lows around $42,500 $BTCUSD #Bitcoin https://t.co/mPiZMs8eYH
  • You know what index didn't suffer an overtly threatening reversal this past session? The Russell 2000. It didn't continue the same steady climb through 2021 that the Dow, SPX and Nasdaq enjoyed; so not as much excess premium https://t.co/ieHojAC7b5
  • USD/JPY extends the rebound from the weekly low (109.11) as the stronger-than-expected US Retail Sales report fuels speculation for an imminent shift in monetary policy. Get your $USDJPY market update from @DavidJSong here:https://t.co/Rozq62yAou https://t.co/toaAHiCavK
Sterling Falls on Report that the BoE will Cut Its Growth Forecast

Sterling Falls on Report that the BoE will Cut Its Growth Forecast

Benjamin Spier, Technical Strategist

Despite markets remaining closed on Monday in Japan and China for respective holidays, the Aussie, Pound, and Yen all started the week with significant declines against the US Dollar in Forex trading.

The British Pound saw a sharp 60 point decline against the US Dollar over the European session because of an article by the UK Telegraph. The Telegraph reported that the three-month Bank of England inflation report, which is set to be released on Wednesday, will raise the inflation forecast to above 2% until 2015 while lowering the growth forecast. The Telegraph predicted some dovish comments from the BoE report despite the higher inflation. The lower growth forecast would contradict earlier comments by BoE Governor King, who said a gentle recovery is underway in the UK.

GBP/USD is currently trading around 1.5750 at the time of this writing. A 6-month low of 1.5630 could provide support, while the key 1.5800 level could continue to provide resistance.

Towards the end of today’s Asian session, possible BoJ governor candidate Kuroda said that additional stimulus can be justified for 2013 and the 2% inflation target is appropriate. Following Kuroda’s comments, USD/JPY saw a steady rise to a session high just below 93.00.

The Aussie Dollar has seen some declines against the US Dollar over Monday’s session, following weaker than expected Australian home loans. Mortgages declined 1.5% in December, thereby disappointing expectations for no change in home loans. A near 4-month low may continue to provide support around 1.0255.

Despite a lack of significant economic releases in today’s European and North American sessions, there is still substantial event risk surrounding this morning’s release of the Group of 30 global economy report and today’s meeting of Euro-zone finance ministers. The Euro-zone finance ministers are expected to discuss aid for Cyprus, Greece’s economic reforms, and plans for direct bailouts of struggling banks from the ESM permanent bailout fund. Any noteworthy agreements on the ESM bailout issue could be Euro positive.

GBPUSD Daily: February 11, 2013

Sterling_Falls_on_Report_that_the_BoE_will_Cut_Its_Growth_Forecast_body_gbpusd.png, Sterling Falls on Report that the BoE will Cut Its Growth Forecast

Chart created by Benjamin Spier using Marketscope 2.0

--- Written by Benjamin Spier, DailyFX Research. Feedback can be sent to instructor@dailyfx.com .

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

DISCLOSURES