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.

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
EUR/USD
Bullish
Oil - US Crude
Bullish
Wall Street
Mixed
Gold
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
Bullish
USD/JPY
Bearish
More View more
Real Time News
  • Join analyst @DavidJSong at 6:30 PM ET/10:30 PM GMT for your weekly update on key news trading events. Register here: https://t.co/gBlrRpCc55 https://t.co/dQxyAORI9P
  • *Reminder: Weekly Strategy Webinar tomorrow morning at 8:30am ET on DailyFX! https://t.co/lxd5fZnn4H
  • A “PIP” – which stands for Point in Percentage - is the unit of measure used by forex traders to define the smallest change in value between two currencies. Learn how to understand pips in forex here: https://t.co/782gHedGTW https://t.co/i6fB1PIQbx
  • #Crudeoil prices could reverse lower as the #OPEC Monthly Oil Market Report (MOMR) forecasts fading global demand and oversupply concerns. Get your #commodities update from @DanielGMoss here: https://t.co/G02ajeLPqZ https://t.co/THuauT4XQ9
  • The outlook for the $EURUSD pair has worsened after its failure to move back to the high just above 1.20 touched on September 1 despite the #ECB’s decision earlier this month not to talk down the Euro. Get your #currencies update from @MartinSEssex here: https://t.co/kDCHxHgGlU https://t.co/Li4jHqaNdC
  • #USDollar Outlook Bearish on Mnuchin & Powell Testimonies, Key US Data ⬇️ https://www.dailyfx.com/forex/fundamental/forecast/weekly/usd/2020/09/20/US-Dollar-Outlook-Bearish-on-Mnuchin-Powell-Testimonies-Key-US-Data.html
  • The London trading session accounts for around 35% of total average forex turnover*, the largest amount relative to its peers. The London forex session overlaps with the New York session. Learn about trading the London forex session here: https://t.co/UTWxbnNz7M https://t.co/fuWSUDE1pT
  • The Federal Reserve System (the Fed) was founded in 1913 by the United States Congress. The Fed’s actions and policies have a major impact on currency value, affecting many trades involving the US Dollar. Learn more about the Fed here: https://t.co/ADSC4sIHrP https://t.co/eRTdlhAOFN
  • The Japanese #Yen may continue to exhibit a bullish behavior as the Bank of Japan (BoJ) appears to be in no rush to alter the path for monetary policy. Get your #currencies update from @DavidJSong here: https://t.co/HFjc6KGzRw
  • The New Zealand Dollar appears poised to extend its climb against its haven-associated counterparts as long-term trend break hints at cyclical upturn. Get your $NZDUSD market update from @DanielGMoss here: https://t.co/CPxP1Q8B6d https://t.co/n2wESiqnpJ
GBPUSD Eyeing BoE Rate Decision, Brexit Amid Prime Minister Race

GBPUSD Eyeing BoE Rate Decision, Brexit Amid Prime Minister Race

2019-06-20 06:30:00
Dimitri Zabelin, Analyst
Share:

TALKING POINTS – BREXIT TIMELINE, BOE RATE DECISION, UK PRIME MINISTER RACE

  • GBPUSD eyes BoE rate decision, Brexit commentary
  • Race for Prime Minister may unnerve Sterling traders
  • Boris Johnson remains in the lead in the race for PM

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

GBP traders will have a tense day ahead with the Bank of England (BoE) rate decision and potential commentary from policymakers on a re-evaluation of Brexit risk in light of the ongoing race for Prime Minister. After two ballot votes, Boris Johnson remains comfortably ahead as the number of candidates continue to thin out. The central bank will likely hold rates amid the clouds surrounding the still-pending EU/UK divorce.

However, this puts the BoE in a tight spot. Year-on-year inflation has been trending above the central bank’s 2 percent target, though a muddy outlook for Brexit continues to deter changes one way or another. The magnitude of the separation’s economic impact would likely require officials to adjust monetary policy whatever the outcome. The central bank does not want to risk acting prematurely in a time of unprecedented uncertainty.

If the BoE raises rates and a “hard Brexit” occurs, this may undermine economic growth and amplify the shock of the UK crashing out of the EU. Never mind the fact that the world is experiencing a slowdown in economic activity which in itself creates an inhospitable environment for tightened credit conditions. The central bank has to cautiously navigate uncharted waters.

Feeling lost on Brexit? See our interactive infographic!

Today, a third ballot will be held to weed out other potential candidates for PM. The current ones are Former Secretary Boris Johnson, Home Secretary Sajid Javid, Foreign Secretary Jeremy Hunt, Environment, Food and Rural Affairs Secretary Michael Gove and International Development Secretary Rory Stewart. The decision for who will take up the mantle will be announced on the week of July 22.

CHART OF THE DAY: TIMELINE FOR BREXIT

Chart Showing Brexit Timeline

GBPUSD 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