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
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
Wall Street
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
Gold
Mixed
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
Mixed
More View more
Real Time News
  • The docket thins out over the coming week, but there are a few serious market highlights that can make for some interesting opportunities in the week ahead. $GBPUSD has the technical chops and fundamental confluence (US CPI, UK GDP, etc) https://www.dailyfx.com/forex/video/daily_news_report/2021/05/08/Dollar-Tumbles-Dow-Hits-Record-Highs-and-Dogecoin-Traders-Tune-In.html https://t.co/BMUQ0xVOge
  • Risk management is one of the most important aspects of successful trading, but is often overlooked. What are some basic principles or risk management? Find out from @PaulRobinsonFX here: https://t.co/IsnpfIZNKr https://t.co/nBfJcptUDK
  • Dogecoin continues to trade higher with explosive energy, attesting to the cryptocurrency's new clout. Meanwhile, Bitcoin and Ethereum sink. Get your market update from @FxWestwater here:https://t.co/ohw714KqB2 https://t.co/EWxKoQykv1
  • Natural gas prices moved higher, capturing a long-term trendline that could support the heating commodity's price in the coming weeks as colder temps support fundamental side. Get your market update from @FxWestwater here:https://t.co/tGUDJE9hn0 https://t.co/nROsrJa1sv
  • The Euro may fall against the US Dollar amid a historically strong month for the Greenback and relative bond yield spreads. EUR/USD appears to be eyeing bearish technical warning signs. Get your $EURUSD market update from @ddubrovskyFX here:https://t.co/njTDk8Ehoi https://t.co/w4II63utz1
  • The US Dollar is still struggling against most ASEAN currencies. USD/SGD remains downside-focused despite recent gains. USD/THB is eyeing a triangle. USD/IDR and USD/PHP may point lower. Get your market update from @ddubrovskyFX here:https://t.co/6Nvvmz8h6d https://t.co/TYsfOXHrro
  • (Weekly Fundamental) Australian Dollar Outlook: AUD/USD May Rise on Dovish Fed Speak After Huge NFP Miss #AUD $AUDUSD https://www.dailyfx.com/forex/fundamental/forecast/weekly/aud/2021/05/07/Australian-Dollar-Outlook-AUDUSD-May-Rise-on-Dovish-Fed-Speak-After-Huge-NFP-Miss.html?CHID=9&QPID=917702&utm_source=Twitter&utm_medium=Dubrovsky&utm_campaign=twr https://t.co/L9pERwjTqh
  • Bitcoin is struggling to extend April’s bounce while Ethereum and Litecoin are exhibiting signs of momentum exhaustion. What are key technical levels to watch for ahead? Find out from @ddubrovskyFX here:https://t.co/PnZId4xOh2 https://t.co/ZTYoxdBxLl
  • The Indian Rupee has been rising despite a surge in local Covid cases, owing to rising yields amid a temporary flood of US Dollars into the banking system. INR remains at risk, eyeing CPI data. Get your market update from @ddubrovskyFX here:https://t.co/6r7hahVtx4 https://t.co/a0z46Q0Mn4
  • Risk management is one of the most important aspects of successful trading, but is often overlooked. What are some basic principles or risk management? Find out from @PaulRobinsonFX here: https://t.co/IsnpfJhp91 https://t.co/tnF1RME8gJ
British Pound May Fall on Industrial Data After BoE Warning

British Pound May Fall on Industrial Data After BoE Warning

Dimitri Zabelin, Analyst

British Pound, GBP, Brexit – Talking Points

  • British pound could fall on slew of manufacturing statistics
  • BoE said persistent weakness may merit “prompt” response
  • Taiwan Dollar higher on election, Kospi rises on chip exports

Asia-Pacific Recap

The Kospi Index rose after South Korea’s chip exports rose 5.3 percent on a year-on-year basis with overall imports showing an increase of 5.7 percent over the same time frame. USD/TWD fell after at the start of the session following the Taiwan election over the weekend that saw the independence-leaning candidate win in a landslide victory over her pro-China counterpart.

British Pound Anxiously Eyes Manufacturing Data

The British Pound may fall if manufacturing data underwhelms and reinforces fears of a continuous industrial slowdown amid ongoing Brexit uncertainty. This is not specific to the UK: the world has been facing an industrial recession for over a year amid the US-China trade war. The United Kingdom has experienced double the pressure from geopolitical risks both at home and overseas.

Year-on-year manufacturing production is expected to shrink to 1.6 percent, lower than the prior -1.2 percent figure, with another similar indicator showing a -1.3 percent estimate, unchanged from the previous period. If the data underwhelms, it could inflation easing expectations after the Bank of England said that persistent weakness could “require a prompt response”. Sterling promptly fell against its major G10 counterparts.

GBP/USD, EUR/GBP, GBP/JPY – Daily Chart

Chart showing GBP/USD

GBP/USD chart created using TradingView

Overnight index swaps are currently pricing in a 70.4 percent probability of a rate cut by the meeting in August, with those instruments shows a 100 percent chance of easing by December. According to the Citi Group Economic Surprise Index, data out of the UK has been tending to underperform relative to analyst’ estimates since November 2019. If this trend continues and key statistics continue to miss, the timeline for easing may be brought forward at the expense of the British Pound.

Chart showing UK Manufacturing

British Pound Technical Analysis

As outlined in my EUR/GBP forecast, the British Pound may fall despite expectations that the UK will officially depart the from EU on January 31. After breaking below the October 10 uptrend, the British Pound index has traded with little indication of a clear direction as it bounces between the upper and lower boundaries of the 1.8532-1.8676 range. A downside breakout, catalyzed by political uncertainty, could precipitate a selloff.

British Pound Index – Daily Chart

Chart showing British Pound Index

British Pound index created using TradingView

BRITISH POUND 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