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.



Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
More View more
Real Time News
  • So much for that Evergrande recovery. Shares of the troubled Chinese property developer are down approximately -12% today following yesterday's impressive rally (biggest in a year)
  • Retail trading platform Robinhood announces hire of new Chief Compliance Officer amid regulatory scrutiny
  • There is a ridiculous number of scheduled Fed speeches on the docket next week. Powell specifically will be speaking multiple times including at an ECB hosted forum on central banking (which also has a panel with Fed, ECB, BOE and BOJ heads)
  • USD Ascending Triangle, Bullish for Q4 - #DXY chart on @TradingView
  • Credit rating agency Standard & Poor's is due to give its sovereign credit rating update on Germany today ahead of weekend national elections
  • RT @BIS_org: Since the early 1990s, changes in the #MonetaryPolicy stance have affected a rather narrow set of prices – mostly in the servi…
  • Huawei's CFO Meng Wanzhou reached deal with the US Dept of Justice to return her to China - Dow Jones
  • Cleveland Fed President Loretta Mester says: - sees US GDP in 2022 between 3.75 and 4% - Supports tapering in November and concluding over the first half of 2022 - After liftoff, accommodative policy needed for some time
  • Fed Chairman Jerome Powell doesn't comment on the growth forecast or monetary policy in his introductory remarks
  • Kansas City Fed President Esther George says: - The labor market friction is fading barring a resurgence of virus - A 'normal' economy is likely to remain elusive for some time - Asset buying effects complicate the judging rate change plan
British Pound May Extend Sharp Rise with Queen's Speech in Focus

British Pound May Extend Sharp Rise with Queen's Speech in Focus

Ilya Spivak, Head Strategist, APAC


  • British Pound eyes Queen’s Speech after the biggest rise in 14 months
  • Expansionary fiscal stance may boost Bank of England tightening bets
  • EUR/GBP selloff gathers pace, 2021 swing bottom in the crosshairs

A quiet session in Asia Pacific trading hours offers a tepid lead for European financial markets ahead of the opening bell. A relatively thin offering on the regional economic data docket probably puts the spotlight on the Queen’s Speech, which will set out the government’s agenda for the new Parliament.

Markets will be keen to see if lawmakers are aiming to take up another round of expansionary fiscal measures. These would aim to help drive the post-Covid recovery and make good on Prime Minister Boris Johnson’s plans on “leveling up” across wide range of initiatives following Brexit.

The government enjoys a comfortable 80-seat majority, so its agenda is likely to move through Parliament fairly smoothly. This means that investors will probably take any plans for a meaningful spending boost at face value, bidding up inflation expectations.

That may inspire speculation about a relatively sooner unwinding of Bank of England stimulus measures, boosting the British Pound against its major counterparts. That would build on yesterday’s impressive 2.3 percent surge, the largest one-day rise in 14 months.


The British Pound accelerated against the Euro after EUR/GBP broke below upward-sloping countertrend support, as expected. From here, a daily close below the swing low at 0.8587 opens the door for a test of the minor barrier at 0.8540, followed by the 2021 bottom at 0.8472.

Alternatively, a rebound back above support-turned-resistance at 0.8624 seems likely to set the stage for another challenge of the range top in the 0.8719-31 zone. Establishing a foothold above this barrier seems like a prerequisite for neutralizing near-term selling pressure.

Euro vs British Pound price chart - daily

EUR/GBP chart created with TradingView


--- Written by Ilya Spivak, Head Strategist, APAC at

To contact Ilya, use the comments section below or @IlyaSpivak on Twitter

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.