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
  • WTI #CrudeOil prices extend gains during Tuesday's Asia-Pacific trading session, nearing the July high at 76.95 Prices are up almost 0.9% on the day so far https://t.co/7afvVUXO27
  • The Federal Reserve System (the Fed) was founded in 1913 by the United States Congress. The Fed’s actions and policies have a major impact on currency value, affecting many trades involving the US Dollar. Learn more about the Fed here: https://t.co/ADSC4sIHrP https://t.co/vtqOrB41CF
  • Brent oil prices hit $80 per barrel for the first time since October 2018 #trading #OOTT
  • Implementing a trading checklist is a vital part of the trading process because it helps traders to stay disciplined, stick to the trading plan, and builds confidence. Learn how to stick to the plan, stay disciplined, and use a checklist here: https://t.co/SQUCCYRCIk https://t.co/QwYndzNRVs
  • This week has started with the recovery rally in risk assets stalled and the Dollar looking down multiple barrels of fundamental threat in monetary policy and debt politics. $EURUSD is well positioned as indicator 1.1650-1.1750 https://www.dailyfx.com/forex/video/daily_news_report/2021/09/28/EURUSD-and-USDJPY-Staged-for-Breaks-as-Fed-Calculus-Shifts-US-Debt-Limit-Looms.html https://t.co/y8pFw0XRqr
  • Risk management is one of the most important aspects of successful trading, but is often overlooked. What are some basic principles or risk management? Find out from @PaulRobinsonFX here: https://t.co/IsnpfJhp91 https://t.co/OYWQSvNK12
  • AUD/NZD, Could This be the Turnaround? - #AUDNZD chart on @TradingView https://t.co/Hl6VSfO5R8
  • Another pleasure being on @ausbiztv with host @AusAndrewG talking about US indices, rising bond yields and $USDJPY Check out the full interview here! - https://t.co/GWWCZ7t9Tf https://t.co/WmqUvCMvpZ
  • 🇦🇺 Retail Sales MoM Prel (AUG) Actual: -1.7% Previous: -2.7% https://www.dailyfx.com/economic-calendar#2021-09-28
  • 🇨🇳 Industrial Profits (YTD) YoY (AUG) Actual: 49.5% Previous: 57.3% https://www.dailyfx.com/economic-calendar#2021-09-28
GBP/USD Vulnerable to Slowing U.K. Inflation - BoE Testimony in Focus

GBP/USD Vulnerable to Slowing U.K. Inflation - BoE Testimony in Focus

David Song, Strategist
GBP/USD Vulnerable to Slowing U.K. Inflation - BoE Testimony in Focus

Fundamental Forecast for GBP: Neutral

GBP/USD may struggle to hold above the 1.5000 handle in the week ahead should the fundamental developments coming out of the U.K. economy curb the Bank of England’s (BoE) scope to normalize monetary policy in 2015.

A marked slowdown in the U.K. Consumer Price Index (CPI) may further dampen the appeal of the British Pound and drag on interest rate expectations as the headline reading is projected to highlight the slowest pace of growth since 2002. However, market participants may show a greater reaction to the stickiness in the core rate of inflation as the BoE sees transitory effects driving the CPI below 1%, and the British Pound may face a near-term rebound should central bank Governor Mark Carney continue to prepare U.K. households and businesses for higher borrowing-costs.

With the BoE scheduled to testify on the Financial Stability report next week, we may see Mark Carney and Co. retain an upbeat tone for the region as the committee sees lower energy costs boosting private-sector consumption. As a result, the BoE may adopt a more hawkish tone for monetary policy as it anticipates a stronger recover in 2015.

In turn, the fresh batch of central bank rhetoric may limit the downside risk for GBP/USD and produce a more meaningful rebound in the exchange rate especially as the Relative Strength Index (RSI) comes off of oversold territory. The RSI signal paired with the monthly/yearly opening range suggests that a major low could now be in place, but the long-term outlook for GBP/USD remains bearish as the Fed is widely expected to normalize monetary policy ahead of the BoE.

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

DISCLOSURES