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. See our updated Privacy Policy here.

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
Bearish
Oil - US Crude
Bullish
Wall Street
Bearish
Gold
Bullish
GBP/USD
Bearish
USD/JPY
Bearish
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
More View more
Real Time News
  • Commodities Update: As of 14:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: 0.93% Silver: 0.75% Gold: 0.72% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/g27Iwp8uPa
  • 🇺🇸 NAHB Housing Market Index (MAY) Actual: 83 Expected: 83 Previous: 83 https://www.dailyfx.com/economic-calendar#2021-05-17
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 90.00%, while traders in Germany 30 are at opposite extremes with 71.53%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/CRl85ShvFp
  • Commodities Update: As of 13:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: 0.78% Silver: 0.70% Gold: 0.56% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/2TtnMVtOFs
  • $EURUSD still battling at that fibo resistance 2167, another inflection this morning https://t.co/v1X3gN2RRX https://t.co/oMC1OvWkI7
  • Heads Up:🇺🇸 NAHB Housing Market Index (MAY) due at 14:00 GMT (15min) Expected: 84 Previous: 83 https://www.dailyfx.com/economic-calendar#2021-05-17
  • Indices Update: As of 13:00, these are your best and worst performers based on the London trading schedule: Germany 30: -0.01% France 40: -0.13% Wall Street: -0.29% US 500: -0.29% FTSE 100: -0.31% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/e0gUTLKXn0
  • The Pound saw a modest bout of buying as GBP had been underpinned by reduced political tail risks after the SNP failed to gain a majority at the Scottish Election. Get your $GBP market update from @JMcQueenFX here:https://t.co/bbxv0Aq2LJ https://t.co/LhP15IXDPp
  • it's a big week for $TSLA stock last week it gave up the trendline that's been in-play since last August This week, opening at the 38.2% retracement of the 2020/21 rally https://t.co/cUThTeLFN8
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 90.11%, while traders in Germany 30 are at opposite extremes with 74.44%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/lyppug4pkN
British Pound Price Outlook: EU Summit May Undermine Brexit Hopes

British Pound Price Outlook: EU Summit May Undermine Brexit Hopes

Dimitri Zabelin, Analyst

British Pound Outlook, EUR/GBP, Brexit – Talking Points

  • British Pound braces for key developments at EU summit
  • Fading hopes for Brexit deal may sap capital from GBP
  • GBP/USD technical outlook: pair may aim to test 1.2978

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

The British Pound may pare some of its recent gains if official commentary at the much-anticipated EU-summit undermines hopes for an orderly Brexit. The concern is whether UK Prime Minister Boris Johnson will be able to gain support at home in a fractured Parliament where his party lacks a majority by 40 seats. On the other hand, EU officials appear cautiously optimistic that a deal can be drafted and approved by Thursday.

If the EU approves Mr. Johnson’s proposed deal, the House of Commons would have to give it the stamp of approval at a special meeting on Saturday. If Parliament sanctions the Prime Minister’s plan, a short delay following October 31 may be required in order to finalize the agreement. But the biggest obstacles in reaching a Brexit deal remains over resolution on the issue of the Irish backstop.

Why is the Irish backstop so important to Brexit negotiations?

Winning over the heart of the Irish Democratic Unionist Party is crucial for Johnson to secure if he is to push a deal through the House of Commons. Securing their support may very well be the only way a deal is reached. Mr. Johnson has adamantly expressed his intent on leaving the EU on October 31, but a bill passed this year compels the PM to ask for an extension if he cannot get a deal done by the end of the summit.

However, Mr. Johnson said that he would “rather be dead in a ditch” than prolong the UK’s departure. With the October 31 deadline approaching, Irish Prime Minister Leo Varadkar has offered the possibility of holding an emergency summit if there was no progress made at the meeting this week. The EU is also considering holding its own summit where it is mulling over extensions ranging from a month to possibly over half a year.

British Pound Forecast

GBP/USD is now trading at a five-month high, though the pair may soon look to retest support at 1.2708 if Brexit hopes fade. Conversely, political optimism may send the British Pound higher vs the US Dollar, though upside momentum may encounter friction at the 1.2978-1.3004 range. Note of caution: political volatility may keep traders from committing capital until there is more clarity.

Market Analysis of the Day: GBP/USD Technical Analysis

Chart showing GBP/USD

GBP/USD chart created using TradingView

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