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
GBP/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
USD/JPY
Bullish
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
Bearish
More View more
Real Time News
  • The spread of #coronavirus promises a global economic hit at a time when the global economy is perhaps especially ill-equipped to deal with one. Growth-correlated assets are vulnerable. Get your market update from @DavidCottleFX here: https://t.co/0If0Jw7c2P https://t.co/mph6z70XeF
  • The $JPY continues to struggle against the US Dollar but there seems little appetite to push USD/JPY much beyond a range which has tended to reassert itself since late last year. Get your market update from @DavidCottleFX here: https://t.co/iaVfPSuXy4 https://t.co/1QPhJmYlQv
  • The #Euro may bounce after hitting the lowest level in close to three years against the US Dollar. While the broader trend points firmly lower, selling pressure may be ebbing. Get your market update from @IlyaSpivak here: https://t.co/697SQ9j5FY https://t.co/6SEvwQyod8
  • GBP/CAD has broken below the September uptrend while EUR/CAD may be ending its consecutive 12 day decline with EUR/CHF approaching key resistance as NZD/CAD aims at November lows. Get your currencies update from @ZabelinDimitri here: https://t.co/GpRB7IKhTA https://t.co/hlHlGdhkHc
  • The $GBP recoiled from chart resistance against the US Dollar, setting the stage for prices to resume a bearish trend reversal triggered mid-January. Get your market update from @IlyaSpivak here:https://t.co/lVpyZkIfJt https://t.co/9oXusxs0Kg
  • The #Euro may have more room to fall versus its major peers such as the US Dollar, Japanese Yen and British Pound. What is the technical picture of EUR/USD, EUR/JPY and EUR/GBP? Get your market update from @ddubrovskyFX here: https://t.co/M6fLA9g3BK https://t.co/HMwQgr1WP5
  • The $USD’s aggressive rise versus ASEAN currencies such as the Singapore Dollar, Indonesian Rupiah, Malaysian Ringgit and Philippine Peso prolonged. What is the technical road ahead? Find out from @ddubrovskyFX here:https://t.co/RsFptNzODf https://t.co/u8meQUSsVG
  • $AUD broke critical range support against its US counterpart, suggesting deeper losses are ahead even after prices hit an 11-year low. Get your market update from @IlyaSpivak here:https://t.co/45YpJRjDYj https://t.co/zWAzaL78Sc
  • After negotiating a series of economic and geopolitical risks in 2019, the S&P 500 rounded out the year more than 30% higher. Will the stock market crash in 2020? Find out from @PeterHanksFX here: https://t.co/8KsjB9YkBB https://t.co/4ph9bdMxz9
  • Italy reports first death from coronavirus - BBG
British Pound Outlook: GBP Eyes BoE Testimony Amid Brexit Drama

British Pound Outlook: GBP Eyes BoE Testimony Amid Brexit Drama

2019-10-23 07:00:00
Dimitri Zabelin, Junior Currency Analyst
Share:

British Pound Forecast, Brexit Latest, BoE Testimony – Talking Points

  • British Pound may continue to suffer amid Brexit perils
  • BoE testimony to House of Lords may pressure Sterling
  • Euro may fall on Eurozone consumer confidence report

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

Brexit Latest: Pound Suffers as Political Headache Worsens

At the end of Tuesday’s Wall Street session, the British Pound was left hammered after a slew of Brexit-related headlines caused Sterling to whipsaw before ending lower along with hopes for an orderly divorce. GBP’s slide may continue if Bank of England Governor Mark Carney’s testimony to the House of Lords casts gloomy shadow over sentiment, amplifies Brexit fears and capital outflow from the British Pound.

Prime Minister Boris Johnson’s Brexit deal passed by a margin of 30 votes (329 ayes and 299 noes) but was followed by a defeat in a bill (known as the program motion) to speed up the timetable of his Brexit proposal.

The PM subsequently announced steps to “intensify preparations for a no-deal Brexit” and to put a hold on debating and voting on legislation until the EU responds to the UK’s request for an extension.

EU Council President Donald Tusk said he would consult EU leaders on whether to sanction a delay until January 31 2020 or a shorter option of a November 30 deadline. An EU official also reportedly said that the bloc is considering a “flextension” whereby a hard exit date would be enforced but the UK could leave before if lawmakers ratified the deal before the deadline.

However, Mr. Johnson has reiterated that he still intends on having the UK depart from the EU by October 31, though laws passed this year prohibit him from doing so. Reconciling his campaign promise with the law is a question traders are continuing to anxiously ponder. The PM also said that if “it decides to delay everything until January or possibly longer” that he would seek an election.

However, the earliest an election would take place is in late November due to a provision put in a place that requires “25 days between an election being called in Parliament and polling day”. According to the Fixed-term Parliaments Act, Mr. Johnson would have to secure 434 votes – or two thirds of the legislature – to trigger a general election.

In the shorter term outlook, Mark Carney will be testifying before the House of Lords which could cause GBP to edge lower if his message carries gloomy undertones. With Brexit negotiations “in limbo” – to quote Speaker John Bercow – the British Pound will also remain suspended in uncertainty and vulnerable to violent price oscillations from political volatility. For more in-depth analysis, follow me on Twitter @ZabelinDimitri.

Market Analysis of the Day: British Pound Hammered as Brexit Hopes Dissolve

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

News & Analysis at your fingertips.