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
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
Bearish
Wall Street
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
Gold
Bearish
GBP/USD
Bearish
USD/JPY
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
More View more
Real Time News
  • 🇲🇽 Markit Manufacturing PMI (NOV) Actual: 43.70 Previous: 43.6 https://www.dailyfx.com/economic-calendar#2020-12-01
  • EUR/USD Rejects 1.20 Again: With month-end noise out of the way, markets can now focus on the longer-term themes. Get your $EURUSD market update from @JMcQueenFX here: https://t.co/KUlnBfnvfN https://t.co/SEOFiV1O12
  • $USD bounce from yday now almost entirely priced-out. Two-year-low lurks just below https://t.co/RgWHkaDihi https://t.co/RxQCFXtQVn
  • $EURUSD has jumped above 1.20000 during the Powell testimony
  • Commodities Update: As of 15:00, these are your best and worst performers based on the London trading schedule: Silver: 4.42% Gold: 1.74% Oil - US Crude: -1.25% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/xDodhRKg6H
  • Heads Up:🇲🇽 Markit Manufacturing PMI (NOV) due at 15:30 GMT (15min) Previous: 43.6 https://www.dailyfx.com/economic-calendar#2020-12-01
  • Reports that a bipartisan group of senators is ready to pitch a new program that will be $908 bln with $180 federal unemployment and $300 bln to the PPP (for $300 week in jobless benefits for up to four months). Still far from what the House Dems have sought north of $2 tln
  • The faster-than-expected slip from the ISM manufacturing activity report is not itself a signal for serious concern, but if the service sector update later this week does similar, the implications for the US will be more troubling into the third Covid wave https://t.co/4dzdiyxo2c
  • FTSE 100 - 50% Fib holds and 50-/200-sdma golden cross-forming...#ftse #ftse100 #stocks @DailyFXTeam https://t.co/ic1nU7RlHZ
  • 🇺🇸 Construction Spending MoM (OCT) Actual: 1.3% Expected: 0.8% Previous: -0.5% https://www.dailyfx.com/economic-calendar#2020-12-01
British Pound to Face Limited Correction on Stronger U.K. Recovery

British Pound to Face Limited Correction on Stronger U.K. Recovery

2013-10-12 00:28:00
David Song, Strategist
Share:
British_Pound_to_Face_Limited_Correction_on_Stronger_U.K._Recovery_body_gbp10112013.png, British Pound to Face Limited Correction on Stronger U.K. Recovery

British Pound to Face Limited Correction on Stronger U.K. Recovery

Fundamental Forecast for the British Pound: Neutral

The British Pound struggled to maintain the bullish trend dating back to July even as the Bank of England (BoE) retained its current policy at the October meeting, but the sterling may trade on a firmer footing next week should the fundamental developments coming out of the U.K. encourage the central bank to implement its exit strategy ahead of scheduled.

It seems as though there was another unanimous vote within the Monetary Policy Committee as the central bank refrained from releasing a policy statement, and the BoE Minutes due out on October 23 may sound more hawkish this time around as the U.K. recovery gather pace.

Ahead of that, a further slowdown in the U.K. Consumer Price Index may prompt a more meaningful correction in the GBPUSD, but another 25.0K decline in Jobless Claims along with a rebound in Retail Sales may limit the downside risk for the British Pound as the stronger recovery heightens the outlook for inflation. As the pickup in economic activity raises the risk of see above-target price growth for a prolonged period of time, the BoE may increase its efforts to achieve the 2% target for inflation, and a more material shift in the policy outlook may spur a run at the 2013 high (1.6341) as the central bank appears to be slowly moving away from its easing cycle.

In turn, the British Pound may face a limited correction as the GBPUSD appears to be finding near-term support around 1.5910-20, the 23.6% Fibonacci retracement from the July advance, and the sterling may ultimately carve out a higher low ahead of the BoE Minutes should the data coming out of the U.K. continue to raise the outlook for growth and inflation. - DS

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

DISCLOSURES