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
More View more
Real Time News
  • SEC Chair Gensler: - Working with Congress on crypto would help - A large number of crypto investors could be harmed
  • Pre-FOMC US Dollar Price Action Setups: EUR/USD, GBP/USD, USD/JPY https://www.dailyfx.com/forex/fundamental/daily_briefing/session_briefing/daily_fundamentals/2021/09/21/Pre-FOMC-US-Dollar-Price-Action-Setups-EUR-USD-EURUSD-GBP-USD-GBPUSD-USD-JPY-USDJPY.html https://t.co/Vyj5hwVXpi
  • The big question is whether the Fed announces taper tomorrow or whether they punt that announcement to the November rate decision, waiting for employment data to improve to the point of ‘significant further progress. More market update from @JStanleyFX :https://t.co/tPoLyqNFc1 https://t.co/o3ES0KKlWr
  • SEC Chair Gensler: - The market is in a better position to absorb global shocks - Securities rules give the SEC great power over crypto
  • feels like we haven't had one of these in quite a while https://www.dailyfx.com/webinars/643096611 Pre-FOMC Price Action Setups, starting right at 1pm, top of the hour 1. USD PA setups 2. Evergrande worries 3. Stonks - fly or die? https://t.co/VF15XbuuJS
  • That all said, staying patient and not chasing is prudent here imo. Tomorrow will likely be better for assessing short-term directional bias (China markets open again following holiday, post-FOMC).
  • Also, S&P Global put out a report overnight that said China would likely step in to curb “far-reaching contagion” re: Evergrande. The House is scheduled to vote on a stopgap funding bill Tuesday, which might be alleviating some investor angst around the debt ceiling as well.
  • Encouraging we recoiled higher off yesterday’s closing level. Could the pre-FOMC drift be at work? Markets were priced for potential hawkish shift and increased odds of taper timeline announcement. Perhaps seeing an unwind of that in light of recent market developments.
  • Join @JStanleyFX at 13:00 EST/17:00 GMT for a webinar on trading price action. Register here: https://t.co/O5PPiQXZKs https://t.co/pXMRUCl53G
  • USD/CAD snaps the recent series of higher highs and lows after struggling to test the August high (1.2949). Get your $USDCAD market update from @DavidJSong here:https://t.co/chaVL0iSIQ https://t.co/Bj7emg2s8n
Pound Overbought on Upbeat BoE, MPC Minutes to Prompt Fresh Highs

Pound Overbought on Upbeat BoE, MPC Minutes to Prompt Fresh Highs

David Song, Strategist
Pound_Overbought_on_Upbeat_BoE_MPC_Minutes_to_Prompt_Fresh_Highs_body_ScreenShot108.jpg, Pound Overbought on Upbeat BoE, MPC Minutes to Prompt Fresh Highs

Pound Overbought on Upbeat BoE, MPC Minutes to Prompt Fresh Highs

Fundamental Forecast for the British Pound: Bullish

The British Pound struggled to hold its ground during the final days of August, with the GBPUSD tagging a weekly low of 1.5426, but the Bank of England (BoE) interest rate decision may help the sterling to preserve the bullish trend dating back to July should the central bank highlight an improved outlook for the U.K. economy. Indeed, the BoE is widely expected to keep the benchmark interest rate at 0.50% while maintaining its asset-purchase program at GBP 375B, and we may see the Monetary Policy Committee refrain from releasing a policy statement should the group vote unanimously to retain its current policy.

It seems as though Governor Mark Carney is becoming upbeat on the economy as he sees a more broad-based recovery in the U.K., and the central bank head may show a greater willingness to retain the wait-and-see approach for an extended period of time as the MPC continues to operate under its inflation-targeting framework. Another 9-0 vote should help to shore up the GBPUSD as it dampens the scope of seeing a further expansion in the BoE’s balance sheet, and we may see a growing number of central bank officials scale back their dovish tone as growth and inflation picks up.

Despite the forward-guidance for monetary policy, expectations for a further rise in economic activity may heighten the outlook for inflation, and it seems as though the central bank is slowly moving away from its easing cycle as the economy gets on a more sustainable path. In turn, the inflation ‘knock out’ may become a more likely scenario for the U.K., and the BoE may take steps to ensure its credibility as price growth has held above the 2% target since December 2009.

The GBPUSD certainly appears to have carved a near-term top around the 1.5700 handle as it failed to put in a close above the 38.2% Fibonacci retracement (1.5680-90), and the relative strength index may highlight further weakness in the exchange rate as the oscillator fails to retain the bullish trend carried over from July. Nevertheless, the upward trending channel in the GBPUSD may continue to take shape should we see a material shift in the policy outlook, and the pair may continue to carve a series of higher highs paired with higher lows as market participants scale back bets for additional monetary support. - DS

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

DISCLOSURES