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
USD/JPY
Bearish
Gold
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
Oil - US Crude
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
Bitcoin
Bullish
More View more
Real Time News
  • NZD/USD Technical Analysis: Kiwi Dollar Rebound in the Works? - https://www.dailyfx.com/forex/technical/home/analysis/nzd-usd/2020/02/26/NZDUSD-Technical-Analysis-Kiwi-Dollar-Rebound-in-the-Works.html?CHID=9&QPID=917708&utm_source=Twitter&utm_medium=Spivak&utm_campaign=twr #NZDUSD #technicalanalysis https://t.co/4MOCgzUL6a
  • Forex Update: As of 08:00, these are your best and worst performers based on the London trading schedule: 🇨🇭CHF: 0.09% 🇪🇺EUR: -0.02% 🇨🇦CAD: -0.04% 🇳🇿NZD: -0.19% 🇯🇵JPY: -0.23% 🇦🇺AUD: -0.39% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/L74roUof0I
  • Indices Update: As of 08:00, these are your best and worst performers based on the London trading schedule: US 500: 0.66% Wall Street: 0.57% France 40: -0.63% Germany 30: -0.76% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/2HqH7X9r30
  • Hey, traders 👋 do you want live AMAS with our analysts, market updates and tools to improve your trading strategy? Join us now on Instagram! 👉 https://t.co/pHGzVMI3tC https://t.co/clt76kjXH4
  • European Opening Calls From IG: #FTSE 6975 -0.62% #DAX 12714 -0.60% #CAC 5653 -0.48% #AEX 580 -0.49% #MIB 22966 -0.54% #IBEX 9206 -0.49% #STOXX 3555 -0.49%
  • #AUDUSD accelerating lower as Chinese stocks benchmarks (#Shanghai Composite, #HangSeng Index) drop. US index futures (#SP500, #DowJones) are pointing higher however, so follow-through is in question. https://t.co/dEgNjn7gDu
  • 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/uC8RCBwLW9
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 96.72%, while traders in USD/CAD are at opposite extremes with 70.31%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/9ytjuGRTBC
  • Recession risk is back on the rise and largely attributable to expected economic impact from the #coronavirus outbreak. Get your market update from @RichDvorakFX here:https://t.co/NhzJHEqwj6 https://t.co/0XVIiOWjID
  • Forex Update: As of 05:00, these are your best and worst performers based on the London trading schedule: 🇨🇦CAD: 0.01% 🇳🇿NZD: -0.04% 🇨🇭CHF: -0.09% 🇦🇺AUD: -0.12% 🇬🇧GBP: -0.12% 🇯🇵JPY: -0.22% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/GtO4ITHwT0
British Pound Fails to Benefit From Enhanced 4Q GDP Report, U.S. Dollar Mixed

British Pound Fails to Benefit From Enhanced 4Q GDP Report, U.S. Dollar Mixed

2010-02-26 12:08:00
David Song, Currency Strategist
Share:

Talking Points
•    Japanese Yen: Weighed by Risk Appetite
•    Pound: 4Q GDP Expands at Faster Pace
•    Euro: Consumer Prices Rise In-Line With Expectations
•    U.S. Dollar: Preliminary 4Q GDP, Existing Home Sales on Tap

British Pound Fails to Benefit From Enhanced 4Q GDP Report, U.S. Dollar Mixed


The British Pound tumbled lower during the European trade even as the preliminary 4Q GDP report reinforced an improved outlook for the U.K., and the bigger-than-expected rise in the growth rate is likely to lead the Bank of England to hold a neutral policy stance next week as the expansion in monetary and fiscal policy continues to feed through the real economy. A Bloomberg News survey shows all of the 31 economists polled forecast the MPC to keep its asset purchase program on pause and to maintain the benchmark interest rate at 0.50%, but any commentary following the rate decision on Thursday could shake up the currency market as investors weigh the prospects for future policy.

Economic activity in the U.K. expanded 0.3% in the fourth quarter, which exceeded expectations for a 0.2% rise in the growth rate, while the annualized rate slipped 3.3% from the previous year amid an initial forecast for a 3.2% drop in GDP. The breakdown of the report showed private consumption increased 0.4% to top forecasts for a 0.3% rise, with government spending surging 1.2%, while capital investments unexpectedly slumped 3.1% from the previous three-month period. At the same time, exports jumped 3.7%, while imports grew 4.1% during the fourth quarter, which fell short of expectations for a 4.6% advance, while a separate report showed service-based activity increased 0.5% during the three-months through December to mark the biggest expansion since the first quarter of 2008. However, a report by Nationwide showed home prices slipped 1.0% in February after rising a revised 1.4% in the previous month, while the annualized rate increased 9.2% from the previous year amid expectations for an 11.0% rise.

The Euro advanced against the greenback for the third-day, with the exchange rate rising to a high of 1.3629 during the overnight trade, but the lack of momentum to cross back above the 20-Day SMA at 1.3680 is likely to keep the single-currency within the downward trending channel from the January high (1.4581) as the European Central Bank continues to see a risk for a protracted recovery. Nevertheless, consumer prices in the Euro-Zone weakened 0.8% in January after rising 0.3% in the previous month, while the annualized rate increased to a 1-year high of 1.0% from the previous year. However, the core rate slipped to 0.9% from 1.1% in December, which exceeded expectations for a drop to 1.0%, and subdued price growth is likely to lead the Governing Council to hold a dovish policy stance next week as they maintain their one and only mandate to ensure price stability.

The greenback weakened against most of its currency counterparts during the overnight trade, while the USD/JPY halted the five-day decline and advanced to a high of 89.51 as investors raised their appetite for risk. As equity futures foreshadow a mixed outlook for the U.S. market, with trading liquidity thinning ahead of the weekend, we may see the major currencies maintain a narrow range going into the North American session. Nevertheless, the preliminary 4Q GDP reading for the U.S. is expected to show a 5.7% rise in the growth rate, with private consumption increasing 2.0%, while a separate report is expected to show a 0.9% rise in existing home sales.


Will the EUR/USD Hold the Broad Range From the Previous Week? Join us in the Forum

Related Articles: 

Volatility Behind the Dollar, Dow and Risk Appetite Increases but a Clear Direction Still Absent


To discuss this report contact David Song, Currency Analyst: instructor@dailyfx.com

Market Brief
Market Brief

 

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

DISCLOSURES

News & Analysis at your fingertips.