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.

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
EUR/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
Oil - US Crude
Bullish
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
Wall Street
Mixed
Gold
Mixed
GBP/USD
Mixed
USD/JPY
Mixed
More View more
Real Time News
  • #SP500 and #DowJones may fall based on recent technical warning signs, will retail investors chase the bottom and what may that mean for their price trends? - https://www.dailyfx.com/forex/technical/article/special_report/2020/09/23/SP-500-and-Dow-Jones-May-Fall-Will-Retail-Investors-Chase-the-Bottom.html?CHID=9&QPID=917702&utm_source=Twitter&utm_medium=Dubrovsky&utm_campaign=twr https://t.co/aSpylweldY
  • Key levels in forex tend to draw attention to traders in the market. These are psychological prices which tie into the human psyche and way of thinking. Learn about psychological levels here:https://t.co/1oygcFMFNs https://t.co/7SXusrNOtH
  • Forex Update: As of 04:00, these are your best and worst performers based on the London trading schedule: 🇬🇧GBP: -0.08% 🇯🇵JPY: -0.13% 🇨🇦CAD: -0.14% 🇪🇺EUR: -0.25% 🇳🇿NZD: -0.28% 🇦🇺AUD: -0.60% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/wmhHLJysGa
  • Heads Up:🇳🇱 GDP Growth Rate QoQ Final (Q2) due at 04:30 GMT (15min) Expected: -8.5% Previous: -1.5% https://www.dailyfx.com/economic-calendar#2020-09-23
  • Heads Up:🇳🇱 GDP Growth Rate YoY Final (Q2) due at 04:30 GMT (15min) Expected: -9.3% Previous: -0.2% https://www.dailyfx.com/economic-calendar#2020-09-23
  • Heads Up:🇯🇵 All Industry Activity Index MoM (JUL) due at 04:30 GMT (15min) Previous: 6.1% https://www.dailyfx.com/economic-calendar#2020-09-23
  • Indices Update: As of 04:00, these are your best and worst performers based on the London trading schedule: FTSE 100: 0.70% Germany 30: 0.42% France 40: 0.38% Wall Street: 0.35% US 500: -0.09% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/wjtAMSYONm
  • 🇹🇭 Balance of Trade (AUG) Actual: $4.35B Expected: $3.45B Previous: $3.34B https://www.dailyfx.com/economic-calendar#2020-09-23
  • 🇹🇭 Balance of Trade (AUG) Actual: $4.30B Expected: $3.45B Previous: $3.34B https://www.dailyfx.com/economic-calendar#2020-09-23
  • #Copper Price Outlook Remains Bullish Despite Shift in Risk Appetite #XCUUSD $HG https://www.dailyfx.com/forex/market_alert/2020/09/23/Copper-Price-Outlook-Remains-Bullish-Despite-Shift-in-Risk-Appetite.html?CHID=9&QPID=917708&utm_source=Twitter&utm_medium=Moss&utm_campaign=twr https://t.co/VvFm9ekfaB
Forex Analysis: British Pound Forecast Remains Bearish Ahead of Key Week

Forex Analysis: British Pound Forecast Remains Bearish Ahead of Key Week

2012-11-10 03:12:00
David Rodriguez, Head of Product
Share:
British_Pound_Forecast_Remains_Bearish_Ahead_of_Key_Week_body_gbp.png, Forex Analysis: British Pound Forecast Remains Bearish Ahead of Key Week

Fundamental Forecast for British Pound: Bearish

It was a tough week for the previously resilient British Pound, as disappointing UK economic data and a turn lower in the US S&P 500 led the GBP to fresh two-month lows against the safe-haven US Dollar (ticker: USDOLLAR) and at risk for further declines.

Recent disappointments in UK economic fundamentals set the stage for similarly lackluster UK labor reports and Retail Sales data in the days ahead, but a Bank of England Inflation Report may have the most significant implications for the British Pound. The British central bank left monetary policy unchanged through its recent meeting but did not produce a statement following their decision.

As such, we’ll keep a close eye on their own forecasts for growth and inflation and whether they suggest further easing is likely amidst lackluster economic performance. Relatively modest inflation readings could further support the case for Bank of England asset purchases and put focus on early-week Consumer Price Index inflation results.

Recent British Pound price action suggests that it may have set a significant top versus the US Dollar and remains poised to trade toward multi-year range lows. Failure at the $1.63 mark left the range intact, and a series of lower highs and lower lows since the September top lends further weight to the case for GBPUSD weakness.

Our technical forecast for the British Pound predicts that any near-term recovery will likely be capped at the $1.6040 mark, and any short-term rallies could provide selling opportunities as the pair sticks to its two-month downtrend. It would otherwise take a material shift in fundamental forecasts—possible though unlikely—to shift our overall GBP-bearish trading bias. - DR

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

DISCLOSURES