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
Subscribe
Please try again
EUR/USD
Bullish
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
Wall Street
Mixed
Gold
Mixed
GBP/USD
Mixed
USD/JPY
Bullish
More View more
Real Time News
  • Knowing how to accurately value a stock enables traders to identify and take advantage of opportunities in the stock market. Find out the difference between a stock's market and intrinsic value, and the importance of the two here: https://t.co/QszmdZX8cS https://t.co/qdrsi61CN8
  • It seems the markets are riding high, but risk is always lurking around the corner. Consider your escape plan before you find yourself in collapsing market. What are the top havens for different conditions in 2021? Find out from @JohnKicklighter here: https://t.co/1oeXWEsJkb https://t.co/IyQdfq29fz
  • Myth or fact? One thing is for sure, there are a lot of misconceptions about trading. Knowing the difference between common trading myths and the reality is essential to long-term success. Find out about these 'myths' here: https://t.co/EDvQdHfIPm https://t.co/R7pa7DsM8n
  • What are some monetary policies that could affect Gold this quarter? Get your Gold free forecast here: https://t.co/bTXkGN1CIM #DailyFXGuides https://t.co/EhdZpmkzaH
  • Even more remarkable than the record high levels of leverage registered in US equities this past week was the attention it garnered. Paying attention to risk is a threat when markets are this high and the docket as dense as it is this week. My outlook: https://www.dailyfx.com/forex/video/daily_news_report/2021/01/23/Dow-VIX-Tesla-and-Leverage-Reflect-Greater-Risk-to-the-Relentless-Bull-Market.html?ref-author=Kicklighter&QPID=917719&CHID=9 https://t.co/KBOJIRPTQe
  • Consolidation or bull flag? A bull flag is a continuation pattern that occurs as a brief pause in the trend following a strong price move higher. Learn how to better spot these formations here: https://t.co/yOEvLjKnct https://t.co/qP2PbS4dsY
  • Are you new to trading? Technical analysis of charts aims to identify patterns and market trends by utilising different forms of technical chart types and other chart functions. Get a refresher on technical analysis or begin building your knowledge here: https://t.co/qV3c7a4YR3 https://t.co/POGWDIkqqz
  • USD hegemony is at risk thanks to changes in the global economy and the long-term consequences of the US-China trade war. Get your market update from @CVecchioFX here: https://t.co/5GO9UrvO4y https://t.co/H76jNJJxU5
  • Did you know a Doji candlestick signals market indecision and the potential for a change in direction. What are the top five types of Doji candlesticks? Find out https://t.co/c51s3IBcEu https://t.co/1TiEWCbJ6t
  • Use this technical analysis pattern recognition skills test to sharpen your knowledge: https://t.co/Qgz89PTxnu https://t.co/fN2mfHgpON
Forex Analysis: British Pound Outlook Propped Up By BoE Policy- 1.6200 Ahead

Forex Analysis: British Pound Outlook Propped Up By BoE Policy- 1.6200 Ahead

David Song, Strategist
British_Pound_Outlook_Propped_Up_By_BoE_Policy_16200_Ahead_body_Picture_1.png, Forex Analysis: British Pound Outlook Propped Up By BoE Policy- 1.6200 Ahead

Fundamental Forecast for British Pound: Bullish

The British Pound tagged a fresh monthly high of 1.6061 as a growing number of Bank of England (BoE) officials softened their dovish tone for monetary policy, and the sterling may track higher going into the December 6 interest rate decision as the fundamental outlook for the U.K. improves. As the economic docket for the following week is expected to show service-based activity expanding at a faster pace, a rise in the Purchasing Managers survey along with an above 50-print in the construction index should prop up the Pound, and the GBPUSD may continue to retrace the decline from back in October amid the shift in the policy outlook.

Although the BoE keeps the door open to expand monetary policy further, we saw diminishing votes during last month’s meeting to expand the asset purchase program beyond the GBP 375B limit as the central bank now sees price growth holding above the 2% target over the next two-years. Indeed, the headline reading for inflation has held above target since November 2009, and renewed price pressures in the U.K. will continue to dampen the Monetary Policy Committee’s (MPC) scope to further embark on its easing cycle as the region emerges from the double dip recession. As the rebound in growth raises the outlook for inflation, the BoE may switch gears in 2013 to preserve price stability, and the central bank may start to adopt a more hawkish outlook for monetary policy as Bank of Canada Governor Mark Carney is set to head the MPC in July. However, as the committee is widely expected to preserve its current policy next week, we may see the central bank refrain from releasing a policy statement, and market participants will certainly look forward to the BoE Minutes due out on December 19 as the board appears to be slowly moving away from its easing cycle.

Nevertheless, a slew of positive developments coming out of the U.K. may trigger a broader move back towards the 1.6190-1.6200 region – the 23.6% Fibonacci retracement from the 2009 low to high – but we will keep a close eye on the relative strength index as it remains capped around the 57 figure. As the oscillator looks poised to break through resistance, we will maintain a bullish forecast going into December, and the pair may ultimately threaten the downward trend carried over from the previous year as interest rate expectations start to resurface. DS

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

DISCLOSURES