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
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
More View more
Real Time News
  • Recessions can devastate the economy and disrupt the fortunes of individuals, businesses, and investors. But economic decline in the business cycle is inevitable, and your trading can be defined by how you respond to crisis. learn how to prepare here: https://t.co/e4CnobJCss https://t.co/9t94CbyQEi
  • The ISM manufacturing index plays an important role in forex trading, with ISM data influencing currency prices globally. Find out about the recent history of ISM data, how to track it, and how to trade its release here: https://t.co/MZtBh88nOv https://t.co/LB749nN0K4
  • The continuity seen across these volatility cycles is a good thing. Historical precedence offer a blueprint for identifying conditions supportive for a vol-event to occur, and how they may unfold. Deepen your knowledge of historical volatility here: https://t.co/vg7w10la3j https://t.co/7JZu61F0OW
  • Tech stocks pulled back from record territory after Amazon posted tepid Q3 guidance. Get your weekly equities forecast from @margaretyjy here: https://t.co/kpYlD2ryue https://t.co/pXDztqY8PQ
  • Many people are attracted to forex trading due to the amount of leverage that brokers provide. Leverage allows traders to gain more exposure in financial markets than what they are required to pay for. Learn about FX leverage here: https://t.co/BdgFmkRxVw https://t.co/LQS1xMPSVc
  • When it comes to buying and selling forex, traders have unique styles and approaches. Learn about buying and selling forex here: https://t.co/D8DXSAdpqC https://t.co/WmRkOUGwlq
  • Recent price action in the US Dollar Index (DXY) casts a bearish outlook for the Greenback as it extends the series of lower highs and lows from earlier this week. Get your weekly USD technical forecast from @DavidJSong here: https://t.co/aQVzoACWEp https://t.co/TBFiTrur0P
  • USD/MXN drops back into its recent range as investors await further guidance from economic data. Get your weekly Mexican Peso forecast from @HathornSabin here: https://t.co/reMgPrFGdF https://t.co/dl6gomcFxF
  • Slippage can be a common occurrence in forex trading but is often misunderstood. Understanding how forex slippage occurs can enable a trader to minimize negative slippage, while potentially maximizing positive slippage. Learn about FX slippage here: https://t.co/Blrl0uF2Ct https://t.co/KS13JNwlvL
  • What is your forex trading style? Take the quiz and find out: https://t.co/YY3ePTpzSI https://t.co/bxQ8s8eGjR
Euro Tumbles As ECB Disappoints, Sterling To Threaten Range On BoE

Euro Tumbles As ECB Disappoints, Sterling To Threaten Range On BoE

David Song, Strategist

Talking Points

  • Euro: ECB Disappoints, Pledges Further Monetary Support
  • British Pound: Preserves Range-Bounce Prices As BoE Maintains Current Policy

Euro: ECB Disappoints, Pledges Further Monetary Support

The Euro tumbled to a fresh weekly low of 1.2172 as the European Central Bank interest rate decision fell short of market expectations, and the single currency may continue to give back the rebound from the previous month (1.2042) as the fundamental outlook for the region turns increasingly bleak. After holding the benchmark interest rate at 0.75%, the ECB pledged to take additional steps to shore up the ailing economy amid the heightening risk for contagion, but we may see President Mario Draghi struggle to push through additional non-standard measures as there appears to be a growing rift within the Governing Council.

Indeed, one member of the board dissented against the decision as the ECB struck a highly dovish tone for monetary policy, and it seems as though the central bank will implement a range of tools over the coming months as the governments operating under the monetary union become increasingly reliant on monetary policy. In turn, we are looking for additional rate cuts paired with more bond purchases amid the ongoing turmoil in the financial system, but the lack of clarity in the policy outlook may weaken the EURUSD further as European officials struggle to restore investor confidence. As the EURUSD failed to clear the 50-Day SMA (1.2410), we’re seeing the relative strength index preserve the downward trend from earlier this year, and we will maintain our bearish bias for the euro-dollar as it appears to be carving out a lower top coming into August. In turn, we should see the bearish sentiment surrounding the single currency gather pace in the days ahead, and the pair looks poised for fresh yearly lows as European policy makers maintain a reactionary approach in addressing the risks surrounding the region.

British Pound: Preserves Range-Bounce Prices As BoE Maintains Current Policy

The British Pound gave back the overnight advance to 1.5678 even as the Bank of England stuck to its current policy in August, and we may see the central bank preserve a wait-and-see approach over the coming months as the new Funding for Lending program gets underway. As the Monetary Policy Committee refrains from releasing a policy statement, market participants will certainly look towards the BoE Minutes due out on August 15, but the quarterly inflation report on tap for next week may dampen the appeal of the sterling should the central bank show a greater willingness to expand monetary policy further. As we wait to hear from the BoE, we should see the GBPUSD maintain the range-bounce price action carried over from the previous month, but the pair may threaten support around the 1.5400 figure should the central bank fuel speculation for more quantitative easing.

--- Written by David Song, Currency Analyst

To contact David, e-mail dsong@dailyfx.com. Follow me on Twitter at @DavidJSong

To be added to David's e-mail distribution list, send an e-mail with subject line "Distribution List" to dsong@dailyfx.com.

Will the EUR/USD Resume the Downward Trend From 2011? Join us in the Forum

Related Articles: Weekly Currency Trading Forecast

FX Upcoming

Currency

GMT

EDT

Release

Expected

Prior

No Scheduled Releases

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

DISCLOSURES