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
More View more
Real Time News
  • How does stock market liquidity benefit its traders? Learn more here: https://t.co/FWKyIDUwAw https://t.co/tyoYrsh8mQ
  • A currency carry trade involves borrowing a low-yielding currency in order to buy a higher yielding currency in an attempt to profit from the interest rate differential. Find out if the carry trade suits your trading style here: https://t.co/7t4BzmLg8w https://t.co/4078fnQJON
  • Looking for a new way to trade reversals? One of the most used reversal candle patterns is known as the Harami. Like most candlestick formation patterns, the Harami tells a story about sentiment in the market. Get better with trading reversals here: https://t.co/kIIBffEMi7 https://t.co/tt59BU8lnS
  • Quarterly earnings from Netflix and Tesla, two big tech companies, will take center stage next week and could set the trading tone for the S&P 500 and the Nasdaq 100. Get your weekly equities forecast from @DColmanFX here: https://t.co/NOCqjJ3TLd https://t.co/HR5xUZeJXp
  • Do you know the difference between investing and trading? Because while the goal might seem the same, they're very different things . Learn more here.https://t.co/fG6fNEPj9q https://t.co/ymGaYjrl1g
  • What is your forex trading style? Take the quiz and find out: https://t.co/YY3ePTpzSI https://t.co/FOMcsxci50
  • Further your trading knowledge and gain informed market analyses from our expert analyst @DavidJSong on Oil with our free Q4 guide, available for free today.https://t.co/Y6XECmr5fQ https://t.co/XQI3PN4bkQ
  • Nasdaq 100 may hit new high soon. https://t.co/ACtVqiOBl0
  • HSTECH index has likely formed an "Inverse Head & Shoulders" pattern. https://t.co/YFIQEYmuyq
  • The HSI has likely formed a “Double Bottom” chart pattern, which is usually viewed as bullish-biased. https://t.co/wMQ14A867Q
British Pound Slips After Data, Still Tied to Range. Can GBP/USD Break Out Ahead of FOMC?

British Pound Slips After Data, Still Tied to Range. Can GBP/USD Break Out Ahead of FOMC?

Daniel McCarthy,

British Pound, GBP/USD, US Dollar, Energy, Commodities - Talking Points

  • The British Pound weakened after data but managed to hold some levels
  • Energy commodities calmed down today, as did most asset classes in Asia
  • With FOMC next week, is this a quiet before the price wrecking storm?

The Great British Pound moved lower after US and domestic data today. Energy commodities took a breather in the Asian session, as did most equity, bond and currency markets.

The US Dollar gave up some ground in the Asian session after rallying in the US as the stellar US retail sales number of 0.7% m/m for the month of August defied expectations of

-0.7%. This is on the back of last month’s -1.1%, which was revised to -1.8%.

Energy commodities have seen moves to elevated prices this week due to severe capacity concerns remaining in several key pockets of the global supply chain. Namely, the Mexican Gulf storm season, the English Channel power connection outage and shipping bottlenecks.

The Baltic freight index is showing the cost of transporting energy commodities at the most expensive in 13 years. With the oncoming Northern Hemisphere winter and Western Pacific typhoon season ahead, markets are nervous about the impact on growth amid high inflation. Several parts of Asia have seen the cost of power rise to the point of being forced to shut down some factories.

GBP/USD moved slightly lower again after UK retails sales disappointed at -0.9% m/m for the month of August. This print came in well below the forecast 0.5% and a previous reading of -2.5% that was revised down to -2.8%.

Looking ahead, today the University of Michigan consumer sentiment data will be closely watched, but the FOMC meeting next Thursday remains in front of mind for markets.

Great British Pound Technical Analysis

GBP/USD has been trading in a range for 2 months between a low of 1.3572 and a high of 1.3982. These levels may now provide support and resistance respectively, should they be tested.

More recently, the high of 1.3913 could offer resistance while the previous lows of 1.3725 and 1.3600 might provide support. The very recent low of 1.3763 is a trend line currently at 1.3770 may provide support.

British Pound Slips After Data, Still Tied to Range. Can GBP/USD Break Out Ahead of FOMC?

Chart created in TradingView

--- Written by Daniel McCarthy, Strategist for DailyFX.com

To contact Daniel, use the comments section below or @DanMcCathyFX on Twitter

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

DISCLOSURES