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
Wall Street
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
More View more
Real Time News
  • ECB's Kazaks - The 2% price target will not be met in the medium term - Inflation outlook likely to be revised higher
  • Emotions are often a key driving force behind FOMO. If left unchecked, they can lead traders to neglect trading plans and exceed comfortable levels of risk. Read on and get your emotions in check here: https://t.co/eILWbFgHRE https://t.co/fs5IRP7MJy
  • ECB's De Cos says conclusion of FT report is incompatible with ECB guidance $EUR
  • 💶 Inflation Rate YoY Final (AUG) Actual: 3% Expected: 3% Previous: 2.2% https://www.dailyfx.com/economic-calendar#2021-09-17
  • 💶 Inflation Rate MoM Final (AUG) Actual: 0.4% Expected: 0.4% Previous: -0.1% https://www.dailyfx.com/economic-calendar#2021-09-17
  • 💶 Core Inflation Rate YoY Final (AUG) Actual: 1.6% Expected: 1.6% Previous: 0.7% https://www.dailyfx.com/economic-calendar#2021-09-17
  • Heads Up:💶 Inflation Rate YoY Final (AUG) due at 09:00 GMT (15min) Expected: 3% Previous: 2.2% https://www.dailyfx.com/economic-calendar#2021-09-17
  • Heads Up:💶 Inflation Rate MoM Final (AUG) due at 09:00 GMT (15min) Expected: 0.4% Previous: -0.1% https://www.dailyfx.com/economic-calendar#2021-09-17
  • Heads Up:💶 Core Inflation Rate YoY Final (AUG) due at 09:00 GMT (15min) Expected: 1.6% Previous: 0.7% https://www.dailyfx.com/economic-calendar#2021-09-17
  • Forex quotes reflect the price of different currencies at any point in time. Since a trader’s profit or loss is determined by movements in price, it is essential to develop a sound understanding of how to read currency pairs. Learn how to read quotes here: https://t.co/CNtqrKWDBY https://t.co/zOjbAQzaP9
GBPUSD Preserves Bullish Trend on BoE Policy- Key Resistance Ahead

GBPUSD Preserves Bullish Trend on BoE Policy- Key Resistance Ahead

David Song, Strategist
Forex_GBPUSD_Preserves_Bullish_Trend_on_BoE_Policy-_Key_Resistance_Ahead_body_ScreenShot083.jpg, GBPUSD Preserves Bullish Trend on BoE Policy- Key Resistance Ahead

GBPUSD Preserves Bullish Trend on BoE Policy- Key Resistance Ahead

Fundamental Forecast for the British Pound: Neutral

The British Pound tracked higher during the first full week of September, with the GBPUSD climbing to a high of 1.5680, but the bullish trend may be coming to an end as the pair comes up against key resistance.

Indeed, the U.K.Jobless Claims report highlights the biggest event risk for the week ahead as we’re expecting to see another 21.0K decline in the figure, but the fresh batch of central bank rhetoric from the Bank of England (BoE) may keep the sterling float as Governor Mark Carney is scheduled to testify in front of the U.K. Parliament’s Treasury Committee on September 12.

Indeed, the BoE refrained from releasing a policy statement after keeping the benchmark interest rate at 0.50% while maintaining the Asset-Purchase Facility at GBP 375B, and it seems as though there was another unanimous vote to maintain the current policy as the economic recovery in the U.K. gradually gathers pace. As the Monetary Policy Committee (MPC) pledges to reinvest the proceeds of the Gilts due to mature this month, it seems as though the central bank will continue to utilize its forward-guidance for monetary policy to further address the persistent slack in the real economy, but it seems as though the central bank may have little choice but to move away from its easing cycle as inflation stubbornly holds above the 2% target.

In turn, the BoE Minutes due out on September 18 may show a growing number of central bank officials drop their dovish tone for monetary policy, and the MPC may put a more hawkish twist on its forward-guidance as the economy gets on a more sustainable path.

From a technical standpoint, the 38.2% Fibonacci retracement of the 2009 range (1.5680-90) may continue to serve as it struggled to close above the key figure in August, and the pair may ultimately threaten the upward trending channel dating back to July should the BoE testimony fail to dampen bets for additional monetary support. As a result, the GBPUSD may face a near-term correction in the days ahead, and the pair may trade within a broad range over the near to medium-term as market participants weigh the outlook for monetary policy. - DS

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

DISCLOSURES