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
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
Bearish
Wall Street
Bearish
Gold
Bullish
GBP/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
USD/JPY
Bearish
More View more
Real Time News
  • Traders utilize varying time frames to speculate in the forex market. The two most common are long- and short-term-time frames which transmits through to trend and trigger charts. Learn more about time-frame analysis here: https://t.co/UalZ8cRSXB https://t.co/O7fLzs4TqT
  • 🇳🇱 Consumer Confidence (OCT) Actual: -30.0 Previous: -28.0 https://www.dailyfx.com/economic-calendar#2020-10-22
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 96.60%, while traders in EUR/USD are at opposite extremes with 74.60%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/fLkteBRqGu
  • The $SPX seems to have worked itself into an inevitable technical break, but follow through is unlikely given the election anticipation. Nevertheless, the Tesla aftermath on Thursday's open will be something to watch . My trading video for today: https://www.dailyfx.com/forex/video/daily_news_report/2020/10/22/SP-500-Due-a-Technical-Break-Dollar-Slides-on-Stimulus-Delay-Pound-Rallies.html?ref-author=Kicklighter&QPID=917719&CHID=9 https://t.co/XPwZSCZqju
  • There are three major forex trading sessions which comprise the 24-hour market: the London session, the US session and the Asian session. Learn about the characteristics of each session here: https://t.co/UVvf51HiVP https://t.co/s0tvG7QXwJ
  • Forex Update: As of 04:00, these are your best and worst performers based on the London trading schedule: 🇯🇵JPY: -0.12% 🇳🇿NZD: -0.12% 🇪🇺EUR: -0.14% 🇨🇭CHF: -0.16% 🇨🇦CAD: -0.20% 🇦🇺AUD: -0.42% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/n7Phs46BX1
  • Heads Up:🇳🇱 Consumer Confidence (OCT) due at 04:30 GMT (15min) Previous: -28.0 https://www.dailyfx.com/economic-calendar#2020-10-22
  • Indices Update: As of 04:00, these are your best and worst performers based on the London trading schedule: FTSE 100: -0.46% Wall Street: -0.58% US 500: -0.58% Germany 30: -0.60% France 40: -0.82% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/xog2DUbSzY
  • British Pound Price Outlook: GBP/USD, GBP/JPY, EUR/GBP Key Levels - $GBPUSD poised to push higher after breaching key resistance. - $GBPJPY rebound struggling to break above the August low. - $EURGBP coiling up above key support https://www.dailyfx.com/forex/technical/home/analysis/gbp-usd/2020/10/22/British-Pound-Price-Outlook-GBPUSD-GBPJPY-EURGBP-Key-Levels.html?CHID=9&QPID=917708&utm_source=Twitter&utm_medium=Moss&utm_campaign=twr $GBP https://t.co/Qr9Tl7Qse9
  • The US Dollar is once again losing ground against #ASEAN FX as $USDGD and $USDIDR may be readying to extend losses. Will $USDMYR and $USDPHP follow? - https://www.dailyfx.com/forex/technical/article/special_report/2020/10/22/US-Dollar-Technical-Forecast-USDSGD-USDIDR-USDPHP-USDMYR.html?CHID=9&QPID=917702&utm_source=Twitter&utm_medium=Dubrovsky&utm_campaign=twr https://t.co/olomq6jsAD
US Dollar May Rise vs GBP if BoE Outlook on Brexit Spooks Markets

US Dollar May Rise vs GBP if BoE Outlook on Brexit Spooks Markets

2019-09-19 07:00:00
Dimitri Zabelin, Analyst
Share:

GBP/USD, Brexit, BoE Rate Decision, US Dollar – TALKING POINTS

  • GBP/USD may fall if BoE reinforces growing no-deal Brexit fears
  • US Dollar and CHF may rise on risk-off tilt in European session
  • Is GBP/USD aiming to retest multi-month descending resistance?

Learn how to use political-risk analysis in your trading strategy!

US Dollar may continue its rise following the FOMC rate decision if the Bank of England’s rate decision and outlook on Brexit spooks markets and puts a premium on liquidity over yield. As the region’s de facto haven – apart from German Bunds – the Swiss Franc may also rise. However, investors may have trepidation in gaining exposure to the latter as the SNB also prepares to deliver its rate decision and outlook on policy.

FOMC Recap: What Happened?

As forecasted, the US Dollar rose after the Fed delivered a 25-basis point rate cut and cooled aggressive easing expectations. Chairman Jerome Powell reiterated that the central bank is employing a data-dependent approach to policy and will cut rates if the prevailing economic circumstances warrant it. Markets also panicked when they found out the board was divided on further easing and taking a more prudent approach.

Want to learn more about the subtle nuances ofFed commentary? Be sure to follow me on Twitter @Zabelin.Dimitri

Bank of England and Brexit

An overwhelming majority of analysts see the Bank of England holding the benchmark interest rate at 0.75 percent as uncertainty around Brexit continues to cloud the future of the United Kingdom’s economy. Much like the BCB in Brazil, the BoE has to carefully take into account the political environment it finds itself embedded in because the outcome could have radical implications for monetary policy.

Since October, year-on-year core CPI has been slipping below the central bank’s two percent in large part due to Brexit turmoil and trade wars undermining consumer/business confidence. But the BoE has to be careful not act prematurely the uncertainty about the EU-UK divorce looms over the heads of policymakers. It is unclear what the economic impact of what either scenario could be and therefore warrants a cautious approach.

GBP/USD Technical Analysis

GBP/USD has recovered almost five percent after touching a three-year low at 1.1959. The pair appear to be losing steam as they approach familiar but intimidating descending resistance not encountered since May. However, the pair appears to be topping around 1.2500 as it struggles to extend beyond it for over half a week. Unless the pair is able to close higher with confirmation, capitulation appears to be the path of least resistance.

Chart of the Day: GBP/USD Recovers Almost Five Percent After Reaching Three-Year Low

Chart showing GBP/USD

GBP 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