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
Mixed
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
Mixed
Gold
Bullish
GBP/USD
Bullish
USD/JPY
Bullish
More View more
Real Time News
  • Since mid-June USD/CAD has consolidated in a well-defined zone. Will today’s Fed members speeches (14:00- 18:00 and 19:00 UK) push the pair in a clear direction? #USDCAD, #USD, #Fed https://t.co/SxjnwNupP2
  • Join @MartinSEssex 's #webinar at 6:30 AM ET/10:30 AM GMT to learn more about trading #sentiment Register here: https://t.co/XUUPRdY06p https://t.co/KsjQit31hK
  • Have you been catching on your @DailyFX podcast "Global Markets Decoded"? Catch up on them now, before new episodes release! https://t.co/Twr44cZ1GB https://t.co/Qe7aw1a6UU
  • Crude Oil Prices May Turn Lower as Covid-19 Fears Reemerge - https://www.dailyfx.com/forex/fundamental/daily_briefing/daily_pieces/commodities/2020/07/07/Crude-Oil-Prices-May-Turn-Lower-as-Covid-19-Fears-Reemerge.html?CHID=9&QPID=917708&utm_source=Twitter&utm_medium=Spivak&utm_campaign=twr #CrudeOil #oott #COVID19
  • Forex trading, which is the act of exchanging fiat currencies, is thought to be centuries old – dating back to the Babylonian period. Learn about the history of Forex here:https://t.co/ePTJlbUP7c https://t.co/bdDrVU9XED
  • 🇮🇹 Retail Sales MoM (MAY) Actual: 25.2% Previous: -10.5% https://www.dailyfx.com/economic-calendar#2020-07-07
  • Chinese gold reserves $110.76bln at the end of June from $108.29bln at the end of May, according to the PBoC
  • EU Commission - Euro Area GDP 2020 forecast at -8.7% (-7.7% previous) - 2021 GDP forecast at 6.1% (6.3% previous)
  • 🇮🇹 Retail Sales MoM (MAY) Actual: 25.2 Previous: -10.5% https://www.dailyfx.com/economic-calendar#2020-07-07
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 97.38%, while traders in US 500 are at opposite extremes with 71.32%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/tjZNp13KdF
GBP/USD Needs Greater BoE Dissent to Breakout of Bearish Trend

GBP/USD Needs Greater BoE Dissent to Breakout of Bearish Trend

2014-08-30 01:51:00
David Song, Strategist
Share:
GBP/USD Needs Greater BoE Dissent to Breakout of Bearish Trend

Fundamental Forecast for Pound:Neutral

The GBP/USD may continue to trade in a narrow range ahead of the Bank of England (BoE) interest rate decision on September 4 amid the failed attempts to close above the 1.6600 handle.

Indeed, the British Pound may face additional headwinds ahead of the policy meeting as the economic docket for the U.K. is expected to show a slowdown in private-sector lending, and a series of dismal data prints may keep the central bank on the sidelines as Governor Mark Carney persistently highlights the ongoing slack in the real economy.

There is a risk of seeing a limited reaction to the interest rate decision should the Monetary Policy Committee (MPC) refrain from releasing a policy statement, and the BoE Minutes due out on September 17 may continue to show a 7-2 split as Ben Broadbent retains a rather dovish outlook for monetary policy. Nevertheless, Credit Suisse Overnight Index Swaps are showing growing bets for higher interest rates as market participants now see the benchmark interest rate climbing by at least 50bp over the next 12-months, and the fresh batch of central bank rhetoric may continue to prop up interest rate expectations should the committee show a greater willingness to normalize monetary policy sooner rather than later.

With that said, the Relative Strength Index (RSI) on the GBP/USD suggests that a near-term bottom is taking shape as it threatens the bearish momentum from earlier this month, but the sterling remains vulnerable to a further decline as it retains the downward trending channel carried over from July. As a result, we would like to see a close above the 1.6600 handle for confirmation as well as conviction for a move higher, and the BoE meeting may serve as the fundamental catalyst to trigger a topside move in the GBP/USD should the central bank adopt a more hawkish tone for monetary policy.

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

DISCLOSURES

News & Analysis at your fingertips.