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.

Free Trading Guides
EUR/USD
Bullish
GBP/USD
Mixed
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
USD/JPY
Mixed
Gold
Bullish
Oil - US Crude
Mixed
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
Bitcoin
Mixed
More View more
Real Time News
  • The Australian Dollar remains severely weighed down by #coronavirus worries and a lack of domestic data points will probably keep that story in the driving seat. Get you $AUDUSD market update from @DavidCottleFX here: https://t.co/qswUnnXVwR https://t.co/NyZ0iEpILm
  • While Sino-US trade jitters are temporarily abating, China-Swedish trade tensions are rising as a part of a political contagion of growing economic hostilities between nations across the world. Get your market update from @ZabelinDimitri here:https://t.co/F1fVoyzoz5 https://t.co/uOLKRebXB1
  • #DidYouKnow the global trade volumes dropped by close to 10% amid the Great Recession. Want to know your #tradewars history? Get it here: https://t.co/f4loFVzX6w https://t.co/GDTFHvUIf7
  • The spread of #coronavirus promises a global economic hit at a time when the global economy is perhaps especially ill-equipped to deal with one. Growth-correlated assets are vulnerable. Get your market update from @DavidCottleFX here: https://t.co/0If0Jw7c2P https://t.co/mph6z70XeF
  • The $JPY continues to struggle against the US Dollar but there seems little appetite to push USD/JPY much beyond a range which has tended to reassert itself since late last year. Get your market update from @DavidCottleFX here: https://t.co/iaVfPSuXy4 https://t.co/1QPhJmYlQv
  • The #Euro may bounce after hitting the lowest level in close to three years against the US Dollar. While the broader trend points firmly lower, selling pressure may be ebbing. Get your market update from @IlyaSpivak here: https://t.co/697SQ9j5FY https://t.co/6SEvwQyod8
  • GBP/CAD has broken below the September uptrend while EUR/CAD may be ending its consecutive 12 day decline with EUR/CHF approaching key resistance as NZD/CAD aims at November lows. Get your currencies update from @ZabelinDimitri here: https://t.co/GpRB7IKhTA https://t.co/hlHlGdhkHc
  • The $GBP recoiled from chart resistance against the US Dollar, setting the stage for prices to resume a bearish trend reversal triggered mid-January. Get your market update from @IlyaSpivak here:https://t.co/lVpyZkIfJt https://t.co/9oXusxs0Kg
  • The #Euro may have more room to fall versus its major peers such as the US Dollar, Japanese Yen and British Pound. What is the technical picture of EUR/USD, EUR/JPY and EUR/GBP? Get your market update from @ddubrovskyFX here: https://t.co/M6fLA9g3BK https://t.co/HMwQgr1WP5
  • The $USD’s aggressive rise versus ASEAN currencies such as the Singapore Dollar, Indonesian Rupiah, Malaysian Ringgit and Philippine Peso prolonged. What is the technical road ahead? Find out from @ddubrovskyFX here:https://t.co/RsFptNzODf https://t.co/u8meQUSsVG
FOREX: British Pound Falls Ahead of Bank of England Rate Decision

FOREX: British Pound Falls Ahead of Bank of England Rate Decision

2011-02-10 08:22:00
Ilya Spivak, Sr. Currency Strategist
Share:

Overnight Headlines

  • US Dollar Rallies as Bernanke Comments Stoke Risk Aversion
  • Australian Jobs Data Sends Mixed Signals as Full-Time Hiring Falls

Critical Levels

CCY

SUPPORT

RESISTANCE

EURUSD

1.3552

1.3760

GBPUSD

1.5993

1.6138

The Euro and the British Pound declined in overnight trade, down 0.5 and 0.2 percent respectively against the US Dollar ahead of the opening bell in Europe as the greenback capitalized on a return to risk aversion in Asian trade (see below). We maintain a bearish outlook on EURUSD and GBPUSD.

Asia Session: What Happened

CCY

GMT

EVENT

ACT

EXP

PREV

JPY

23:50

Machine Orders (MoM) (DEC)

1.7%

5.0%

-3.0%

JPY

23:50

Machine Orders (YoY) (DEC)

-1.6%

2.2%

11.6%

JPY

23:50

Domestic Corporate Goods Price Index (MoM) (JAN)

0.5%

0.3%

0.4%

JPY

23:50

Domestic Corporate Goods Price Index (YoY) (JAN)

1.6%

1.4%

1.2%

JPY

23:50

Housing Loans (YoY) (4Q)

3.2%

-

3.6%

AUD

0:30

Employment Change (JAN)

24.0K

17.5K

1.8K (R-)

AUD

0:30

Unemployment Rate (JAN)

5.0%

5.0%

5.0%

AUD

0:30

Full Time Employment Change (JAN)

-8.0K

-

0.2K (R-)

AUD

0:30

Part Time Employment Change (JAN)

32.0K

-

1.6K (R+)

AUD

0:30

Participation Rate (JAN)

65.9%

65.8%

65.8%

The US Dollar pushed broadly higher in overnight trade as stocks sold off in Asia after Federal Reserve Chairman Ben Bernanke poured cold water on investors’ optimism in the wake of last Friday’s drop in the US unemployment rate, saying the metric is likely to remain high “for some time”. We suspected the markets’ cheery take on the data would be short-lived considering the drop in the jobless rate owed to the lowest labor-force participation since 1984, not a pickup in hiring. The greenback added as much as 0.4 percent on average against its major counterparts while the MSCI Asia Pacific regional benchmark stock index slumped 0.8 percent.

The Australian Dollar underperformed, sliding as much as 0.8 percent against its US namesake as a mixed set of Employment figures failed to arrest risk-linked selling. While the headline reading showed the economy added 24,000 jobs in January – topping expectations for a 17,500 increase – details of the report showed the increase came entirely from part-time jobs. Meanwhile, full-time hiring declined for the first time in three months and December’s reading was revised sharply lower. On balance, a preference for part-time workers hints at employers’ unwillingness to commit to long-term labor contracts, pointing to a lack of confidence in the economy’s growth prospects.

Euro Session: What to Expect

CCY

GMT

EVENT

EXP

PREV

IMPACT

GBP

-

NIESR Gross Domestic Product Estimate (JAN)

-

0.5%

Medium

CHF

6:45

SECO Consumer Confidence (JAN)

10

7

Low

EUR

7:45

French Industrial Production (MoM) (DEC)

-0.3%

2.3%

Low

EUR

7:45

French Manufacturing Production (MoM) (DEC)

-0.2%

2.2%

Low

EUR

7:45

French Industrial Production (YoY) (DEC)

5.7%

6.0%

Low

EUR

7:45

French Manufacturing Production (YoY) (DEC)

6.0%

5.1%

Low

CHF

8:15

Consumer Price Index (YoY) (JAN)

0.6%

0.5%

Medium

CHF

8:15

Consumer Price Index (MoM) (JAN)

-0.2%

0.0%

Medium

EUR

9:00

Italian Industrial Production s.a. (MoM) (DEC)

0.2%

1.1%

Low

EUR

9:00

Italian Industrial Production w.d.a. (YoY) (DEC)

4.5%

4.1%

Low

EUR

9:00

Italian Industrial Production n.s.a. (YoY) (DEC)

-

4.1%

Low

EUR

9:00

ECB Publishes Monthly Report (FEB)

-

-

Medium

GBP

9:30

Industrial Production (MoM) (DEC)

0.5%

0.4%

Medium

GBP

9:30

Industrial Production (YoY) (DEC)

3.7%

3.3%

Medium

GBP

9:30

Manufacturing Production (MoM) (DEC)

0.4%

0.6%

Low

GBP

9:30

Manufacturing Production (YoY) (DEC)

5.4%

5.6%

Low

GBP

12:00

Bank Of England Asset Purchase Target (FEB)

200B

200B

High

GBP

12:00

Bank of England Rate Decision (FEB)

0.5%

0.5%

High

All eyes are on the monetary policy announcement from the Bank of England, with investors positioned for hawkish turn in policymakers’ rhetoric. Indeed, a Credit Suisse gauge of priced-in rate hike expectations for the next 12 months stands at the highest in year.

On balance, this seems reasonable. While economic growth disappointed in the four quarter, the overall outcome for 2010 outdid the central bank’s own forecasts.

Meanwhile, the annual inflation rate stands at an eight-month high, challenging the central bank’s credibility as a bulwark of price stability considering Mervyn King and company spent most of last year promising that CPI would retreat on its own only to see it continue to march upward. Minutes from January’s BOE sit-down reinforced the likelihood that policymakers would err on the side of price stability, opting to handle the threat of a back-slide into recession on the back of the government’s austerity measures when and if it materializes.

While this seemingly points the way higher for the British Pound, the currency’s gains may be limited against safe-haven counterparts like the US Dollar with overall risk appetite still noticeably bruised in the aftermath of Ben Bernanke’s sobering comments overnight. Stock index futures are tracking lower ahead of the opening bell, hinting the greenback is poised to extend gains as risk aversion persists in European hours.

For real time news and analysis, please visit http://www.dailyfx.com/real_time_news

To receive future articles by email, please contact Ilya at ispivak@dailyfx.com

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

DISCLOSURES

News & Analysis at your fingertips.