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
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
GBP/USD
Mixed
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 $AUD has risen in anticipation of a deal Washington and Beijing. But the Australia-China trade relationship has not suffered much and may even have been helped by China’s spat with the US. Get your market update from @DavidCottleFX here:https://t.co/An7h5X0Zcz https://t.co/Rn7mLbS1EF
  • How can traders avoid #FOMO in trading? Start by implementing a well-heeled plan taking only four hours per week. Get your insight from @JStanleyFX here: https://t.co/vwUShQPc27 #tradingstyle https://t.co/0Wn4xBL0AY
  • Do you know which type of stock is the right investment for you? Stock types help investors decide on specific #stocks to trade or assist with valuation methods either fundamentally or technically. Learn more about stock types here: https://t.co/yO3JalkqUU https://t.co/RoNdExHAdt
  • The status of the US #dollar as the safe-haven asset of choice remains untouched and any weakness in the greenback is likely to be short-lived. Get your $USD market update from @nickcawley1 here: https://t.co/LO2u38jpUT https://t.co/ctgCJSOeTH
  • #FTSE 100 testing key support as the index lacks a directional bias. #DAX reverses off channel top. Get your indices technical analysis from @JMcQueenFX here: https://t.co/IHF2dgMfg9 https://t.co/2fMTFlOeTR
  • With knowledge of price action, traders can perform a wide range of technical analysis functions without the necessity of any indicators, including management of risk. Build on you knowledge of price action here: https://t.co/9hQA0bsYtt https://t.co/5KQowxuiBf
  • The term ‘Ichimoku,’ literally means ‘one glance,’ in Japanese. Ichimoku, or the one glance indicator, is considered to be a self-contained system in the fact that no additional indicators are necessary. Learn more about the 'one glance' indicator here: https://t.co/T7o7W9C0Ro https://t.co/7bhBfWvEkR
  • Support and resistance are the cornerstone of technical analysis, making it the foundation that you build your knowledge on. Build a stronger foundation here: https://t.co/yXLaRpl90I https://t.co/85JHunf2Xf
  • Many traders ask how a trading method that is 77 years old is applicable today. Learn about the Gartley pattern and see how you can incorporate it into your trading style here: https://t.co/2yPmGH0XvT https://t.co/rtqUKZSdn1
  • 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/e4CnobJCss https://t.co/ywv7RVP9qY
GBP Eyes UK GDP - EUR/USD Watches EU Industrial Data, US CPI

GBP Eyes UK GDP - EUR/USD Watches EU Industrial Data, US CPI

2019-05-10 06:30:00
Dimitri Zabelin, Junior Currency Analyst
Share:

TALKING POINTS – UK GDP, US CPI, EUROPEAN INDUSTRIAL PRODUCTION

  • How will UK GDP impact Bank of England monetary policy?
  • Euro eyeing upcoming European industrial production data
  • US CPI will be in global crosshairs after last FOMC meeting

See our free guide to learn how to use economic news in your trading strategy!

APAC RECAP

Asia Pacific trading hours had a tumultuous day after a series of oscillating developments in US-China trade relations. After relations suddenly took a hit at the beginning of the week, markets were roiled with major equity indices shedding gains between 1-3 percent amid fears of a collapse in trade negotiations. Beijing and Washington will continue talks tomorrow against the backdrop of a 15 percent increase on Chinese imports.

US-China trade relations will likely continue to remain a headline risk because of the implications for world growth prospects. Major institutions including the IMF and WTO have cited the trade war as a leading cause in global deceleration and has been applying pressure on emerging markets and other cycle-sensitive assets.

BREXIT, UK GDP

Sterling will be watching tomorrow’s release of UK GDP, though the impact of the data on GDP may be limited by the Bank of England’s monetary policy against the backdrop of Brexit. Despite the BoE’s hawkish disposition, the central bank is continuing to cater its monetary policy around the outcome of the UK-EU divorce.

Because the outcome of Brexit will likely carry with it significant implications for the UK’s growth prospects, the BoE is hesitant to make any adjustments in policy until the outlook is clearer. A similar dynamic of monetary policy being strongly influenced by a political outcome is also being seen in Brazil. In the meantime, GBP’s price movement will likely continue to be driven primarily by Brexit-related risk.

EUROPEAN INDUSTRIAL PRODUCTION

In Europe, French and Italian industrial production will be published with expectations of negative readings for both countries. Both Eurozone member states are undergoing tough domestic conditions that are weighing on local growth. France’s yellow vest protests are continuing to weigh on sentiment and are pressuring French president Emmanuel Macron to adopt fiscal measures that may have longer-term destabilizing effects.

In Italy, populist Deputy Minister Matteo Salvini and Luigi di Maio are continuing to test the resolve of Brussels by pursuing their controversial budget deficit that will likely result in another spat with EU officials. The last time Rome and Brussels had the battle of budgets, the spread between Italian and German 10-year bond yields widened over 100 percent. Year-to-date, they have not recovered.

The disparity between the two is the result of a greater trepidation of lending to Rome over Berlin due to the former’s precarious economic prospects. Despite downward revision of growth prospects, Salvini pledged earlier this week to implement tax cuts even if it violates the deficit limitations. Such fiscal-rule bending is likely to be amplified after this month’s European Parliamentary elections. Europe is in the endgame now.

Why are the upcoming EP elections the most consequential European-wide vote in the EU’s history? Be sure to follow me on Twitter @ZabelinDimitri to receive my European Parliamentary elections guide and outlook.

US CPI, FED

US CPI will be in global crosshairs following the most recent FOMC meeting when Fed Chairman Jerome Powell alluded to less-than-optimal inflation conditions being “transitory”. Powell’s comments at the last FOMC meeting surprised markets because of the comparatively less-dovish outlook he outlined. Monitoring the upcoming CPI will be key because of its potential to tilt the balance policy more toward a hike than a cut.

CHART OF THE DAY: SPREAD BETWEEN GERMAN, ITALIAN, GREEK, SPANISH BOND YIELDS 10-YEAR BOND YIELDS

Chart Showing Italian, Greek Spanish Bond Yields

FX TRADING RESOURCES

--- Written by Dimitri Zabelin, Jr Currency Analyst for DailyFX.com

To contact Dimitri, use the comments section below or @ZabelinDimitrion Twitter

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

DISCLOSURES

News & Analysis at your fingertips.