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
Bearish
GBP/USD
Mixed
USD/JPY
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
Gold
Bullish
Oil - US Crude
Bearish
Bitcoin
Bearish
More View more
Real Time News
  • The MACD is often used with its default setting when entering trades. However, this versatile indicator can be customized to assist traders in exiting trades too. Learn how to better incorporate the MACD into your trading strategy here: https://t.co/HnY7gzsI2q https://t.co/5F1DSvAXyy
  • What are some factors affecting $GBP as we head into 2020, quarter one? Download your Sterling fundamental forecast with @nickcawley1 here to find out: https://t.co/YfDSYSATK9 https://t.co/ANFLIuDY4J
  • Trading Global Markets new #podcast features @DailyFX Anlayst @PeterHanksFX , who discusses what assets would benefit in the next #recession. Tune into this new podcast episode hosted by @MartinSEssex here: https://t.co/Twr44cZ1GB https://t.co/llKzvZGDpQ
  • The #Euro remains weak against a range of currencies and any move higher is struggling to gain traction as the single currency continues to be sold-off. Get your #EUR technical analysis from @nickcawley1 here: https://t.co/9B2m0kmd4d https://t.co/ZENxpC59mP
  • The Indian Rupee 2020 outlook is bearish as India faces stagflation risk amid rising onion and crude oil prices. $USDINR may rise in the medium-term as the RBI defers hiking rates. Get your market update from @ddubrovskyFX here: https://t.co/lRrlZjAQDw https://t.co/mFv1EOYMjG
  • The $GBP may be on the cusp resuming a 12-year downtrend against the US Dollar as signs of topping emerge at pivotal chart resistance. Get oyur market update from @IlyaSpivak here:https://t.co/9rM3OjWmBA https://t.co/sUWcSFruHw
  • The $NZD may be on average at risk to further losses against its major counterparts such as the US Dollar and Japanese Yen. Where to for NZD/USD and NZD/JPY from here? Find out from @ddubrovskyFX here:https://t.co/OFjePKYdCb https://t.co/eo1c6QAVd8
  • $AUDJPY technical positioning hints prices may be on cusp of turning lower after a late-2019 bounce, recoupling with a dovish RBA policy outlook. Get your market update from @IlyaSpivak here: https://t.co/z84Y0V0ZtH https://t.co/wcIGO1emDw
  • The Japanese Yen has faded into 2020 as market risk appetite has held up and hit demand for haven assets. $USDJPY now challenges a key medium-term downtrend, but hasn’t topped it yet.Get your market update from @DavidCottleFX here:https://t.co/4X6vgCgkB7 https://t.co/FfCkGhtHsm
  • The $USD may fall against the Swedish Krona and Norwegian Krone if commentary from officials at the Davos forum uplift market mood and pressure haven-linked currencies. Get your market update from @ZabelinDimitri here:https://t.co/SZAG0yMu3d https://t.co/cBZj5tC0Ny
British Pound to Decline as Focus Shifts to Risk Sentiment Trends

British Pound to Decline as Focus Shifts to Risk Sentiment Trends

2011-03-12 02:05:00
Ilya Spivak, Sr. Currency Strategist
Share:
British_Pound_to_Decline_as_Focus_Shifts_to_Risk_Sentiment_Trends_body_tof_03112011_gbp.png, British Pound to Decline as Focus Shifts to Risk Sentiment Trends

Fundamental Forecast for British Pound: Bearish

Last week’s Bank of England rate decision proved to be another non-event, with traders now turning their attention to risk appetite until minutes from the sit-down are released in two weeks, offer a reading on the central bank’s evolving hawkish bias. Indeed, the correlation between GBPUSD and the UK-US 2-year yield spread (a gauge of relative monetary policy expectations) has dropped to the lowest in three months. Meanwhile, the correlation between the pair and the MSCI World Stock Index – a proxy for broad trend in sentiment – has strengthened dramatically through the first two weeks of March. Looking ahead, this hints the path of least resistance leads lower as a confluence of headwinds bears down on the spectrum of risk-sensitive assets.

The bears have their pick of reasons to push prices lower. Turmoil in the Middle East and North Africa continues, with Libya now engulfed in all-out civil war and protests heating up in Yemen, Bahrain and – perhaps most dangerously with regard to oil prices – Saudi Arabia. Further, signs of material economic slowdown are becoming increasingly apparent in China following a dismal trade balance report. Finally, the end-game to the Euro Zone debt crisis appears to have been fumbled even before the crucial March 25 sit-down of the region’s leaders as a preliminary summit on Friday yielded an agreement conspicuously heavy on rhetoric but short on substance, opening the door for sovereign default fears to swell anew. Policymakers announced changes that were largely ceremonial: the European Financial Stability Facility (EFSF) will now be able to access its full capital base of 440 billion euros, and set “goals” rather than binding targets on budget rules for member states. These are half-measures at best: the bailout fund is still woefully inadequate to deal with the rescue of a larger state like Spain, and Euro Area members’ past record on adherence to the Stability and Growth Pact (which outlines budget deficit limits) suggests the new benchmarks will not amount to much in practice.

Turning to the economic calendar, February’s Jobless Claims figures amount to the only bit of top-tier event risk on the docket. Expectations are calling for benefits applications to rise 1,300 from the previous month while the Claimant Count – a proxy for the jobless rate – holds steady at 4.5 percent. On balance, the report falls well within the range of outcomes recorded since July, pointing to relatively stable labor-market conditions. To that affect, the figures are unlikely to meaningfully dislodge investors’ priced-in view of the UK economy and so will probably yield a muted reaction at best from price action.

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

DISCLOSURES

News & Analysis at your fingertips.