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
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
Oil - US Crude
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
Wall Street
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
Gold
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
GBP/USD
Bullish
USD/JPY
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
More View more
Real Time News
  • #CrudeOil price action could consolidate into a broad trading range following a historic Q2 as barriers of technical confluence stand to contain the commodity’s direction. Download our oil #trading guide for the full report: https://t.co/DcjPcVpX5x https://t.co/EJlDquZ9WR
  • It’s unlikely that the #ECB on its own will continue to be able to prevent the Euro from weakening if EU governments continue to argue about policy. Download our #EUR trading guide to find out more: https://t.co/Kjp34DoEzE https://t.co/gtKQa9zXX5
  • The #USD spent the bulk of Q2 in a range after a climactic Q1; and with a series of risk themes continuing to push, combined with an election in November, the door appears open for more vol in USD. Download our USD trading guide here: https://t.co/2Wo7EcwAht https://t.co/BA5dWk4wTt
  • $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/OTTEmg76W8
  • The immediate focus is on a break of this multi-week consolidation formation in the Australian Dollar with the broader rally vulnerable while below 7042. Get your AUD technical analysis here: https://t.co/iEYos1ioBc https://t.co/kuzB3Eqps0
  • #Gold prices have rallied to nine-year highs with the breakout testing multi-year uptrend resistance into the open of Q3. Can the rally be sustained? Download our latest Gold trading guide!: https://t.co/3KO2QWOnOt https://t.co/YIIGZdeIAJ
  • Why financial market traders must monitor both monetary and fiscal policy? Find out from @MartinSEssex here:https://t.co/Fkzk88Y5gm https://t.co/zerRXZC1Tq
  • Get your snapshot update of the of relative currency strength and exchange status from around the globe here: https://t.co/DmhBkd4B0k https://t.co/uj93z2SHpH
  • The Australian Dollar’s surge from the March lows may be coming to an end as bearish patterns begin to line up on multiple time-frames. Check out our #AUD trading guide to learn more here: https://t.co/pjfm07tqFd https://t.co/VypHLra1ER
  • The Evening Star candlestick is a three-candle pattern that signals a reversal in the market and is commonly used to trade forex. Learn more about the evening star candlestick pattern here: https://t.co/8OTE7m01IG https://t.co/Vumcng7UB3
GBP/USD to Carve Higher-Low on Dovish FOMC

GBP/USD to Carve Higher-Low on Dovish FOMC

2014-07-25 03:25:00
David Song, Strategist
Share:
GBP/USD to Carve Higher-Low on Dovish FOMC

Fundamental Forecast for Pound:Bullish

The GBP/USD faced a larger correction going into the end of July as the Bank of England (BoE) Minutes showed a unanimous vote to retain the current policy, but the fundamental outlook continues to generate a bullish bias for the British Pound as central bank Governor Mark Carney sees the spare capacity in the U.K. economy being used up faster than expected.

It seems as though the Monetary Policy Committee (MPC) is moving closer to normalizing monetary policy as ‘some’ members see less risk of a rate hike derailing the economic recovery, and it appears as though a growing number of central bank officials are showing a greater willingness to raise the benchmark interest rate later this year as the underlying momentum in the U.K. economy looks ‘more assured.’ Despite the lackluster 2Q U.K. GDP print, the International Monetary Fund (IMF) continued to raise its economic forecast for the region, with the group now calling for a 3.2% expansion in 2014 versus an initial forecast for a 2.9% rise.

As a result, the BoE’s Inflation report due out on August 13 may further boost the appeal of the sterling should the central bank adopt a more hawkish tone for monetary policy, and the GBP/USD looks poised to retain the bullish trend carried over from the previous year as the Federal Reserve remains reluctant to move away from its highly accommodative policy stance.

With that said, we are still looking for a higher-low in the GBP/USD as price continues to hold above channel support, and the Federal Open Market Committee (FOMC) interest rate decision on July 30 may serve as the fundamental catalyst to spark a resumption of the bullish trend should Chair Janet Yellen continue to highlight a dovish tone for U.S. policy. - DS

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

DISCLOSURES

News & Analysis at your fingertips.