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
Subscribe
Please try again
EUR/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
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
Wall Street
Mixed
Gold
Bearish
GBP/USD
Bullish
USD/JPY
Bearish
More View more
Real Time News
  • Commodities Update: As of 18:00, these are your best and worst performers based on the London trading schedule: Gold: 0.82% Silver: 0.65% Oil - US Crude: -0.05% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/KVfIXfvjtM
  • Gold breaks out of the range-bound price action from earlier this week as the 10-Year US Treasury yield slips to a fresh monthly low (1.53%). Get your $XAUUSD market update from @DavidJSong here:https://t.co/QlflNxQb8o https://t.co/cMYBlVaH5X
  • Bank of America sets bond sale at $15 billion, new record issuance for a bank - BBG $BAC
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 92.51%, while traders in Germany 30 are at opposite extremes with 80.34%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/Rt3UaXS0iz
  • CI Global Asset Mgmt to launch world's first Ethereum ETF - BBG $ETH
  • Indices Update: As of 18:00, these are your best and worst performers based on the London trading schedule: Wall Street: 0.28% US 500: 0.16% France 40: 0.08% FTSE 100: 0.08% Germany 30: 0.03% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/GMkjgMV7IS
  • US Indices are mixed today. The S&P 500 and Dow are up while Tech and Small Caps are trading slightly in the red. DOW +0.28% SPX +0.17% NDX -0.12% RUT -0.13% $DIA $SPY $QQQ $IWM
  • The US 10yr Treasury yield has slightly risen from the one month low hit yesterday around 1.53% to currently trade around 1.57%. Yields remain depressed compared to their levels from late March/early April. $USD https://t.co/uJJHXPaOhm
  • Retail CFD traders (at IG) have built up their heaviest short and net short position on the $SPX since we hit the peak at the beginning of September: https://www.dailyfx.com/sentiment https://t.co/IGK0KKRwwB
  • Hey traders! Wrap up the week with a quick market update from @DailyFX Chief Strategist @JohnKicklighter 👇 https://t.co/qLtlinTzj8
GBPUSD Eyeing BoE Rate Decision, Brexit Amid Prime Minister Race

GBPUSD Eyeing BoE Rate Decision, Brexit Amid Prime Minister Race

Dimitri Zabelin, Analyst

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