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.

Free Trading Guides
EUR/USD
Bearish
GBP/USD
Mixed
USD/JPY
Bullish
Gold
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
Bitcoin
Bearish
More View more
Notice

DailyFX PLUS Content Now Available Freely to all DailyFX Users

Real Time News
  • Tune in to @nickcawley1 's #webinar at 6:30 AM ET/10:30 AM GMT to prepare for key UK events and markets in the week ahead. Register here: https://t.co/xewSeUoDaT https://t.co/BMz7EABBcG
  • GBP/JPY IG Client Sentiment: Our data shows traders are now net-short GBP/JPY for the first time since May 05, 2019 when GBP/JPY traded near 145.89. A contrarian view of crowd sentiment points to GBP/JPY strength. https://www.dailyfx.com/sentiment https://t.co/HnSq6rECvS
  • Saudi Arabia's Khurais and Abqaiq facilities are currently producing around 4.3mbpd - sources #OOTT
  • LIVE NOW: Join DailyFX Market Analyst @DavidCottleFX for a look ahead at the major economic data which will drive Asia Pacific markets in the coming seven days. https://www.dailyfx.com/webinars/985612483?utm_source=Twitter&utm_medium=DFXGeneric&utm_campaign=twr
  • 🇪🇺 (EUR) Markit Eurozone Services PMI (SEP P), Actual: 52.0 Expected: 53.2 Previous: 53.5 https://www.dailyfx.com/calendar?utm_source=Twitter&utm_medium=TweetRobot&utm_campaign=twr
  • 🇪🇺 (EUR) Markit Eurozone Composite PMI (SEP P), Actual: 50.4 Expected: 52.0 Previous: 51.9 https://www.dailyfx.com/calendar?utm_source=Twitter&utm_medium=TweetRobot&utm_campaign=twr
  • 🇪🇺 (EUR) Markit Eurozone Manufacturing PMI (SEP P), Actual: 45.6 Expected: 47.3 Previous: 47.0 https://www.dailyfx.com/calendar?utm_source=Twitter&utm_medium=TweetRobot&utm_campaign=twr
  • Have you joined @DailyFX @facebook group yet? Discuss your #forex strategies and brush up on your skills with us here: https://t.co/jtY1G7g8yx https://t.co/AGxlGkW2C6
  • Heads Up:🇪🇺 EUR Markit Eurozone Composite PMI (SEP P) due at 08:00 GMT (15min), Actual: N/A Expected: 52.0 Previous: 51.9 https://www.dailyfx.com/economic-calendar#2019-09-23
  • Heads Up:🇪🇺 EUR Markit Eurozone Services PMI (SEP P) due at 08:00 GMT (15min), Actual: N/A Expected: 53.2 Previous: 53.5 https://www.dailyfx.com/economic-calendar#2019-09-23
GBP/USD Preserves Bearish Momentum Ahead of BoE Meeting

GBP/USD Preserves Bearish Momentum Ahead of BoE Meeting

2015-01-30 22:47:00
David Song, Currency Strategist
Share:
GBP/USD Preserves Bearish Momentum Ahead of BoE Meeting

Fundamental Forecast for GBP: Neutral

The Bank of England (BoE) interest rate decision may have a limited impact on GBP/USD as the central bank is widely expected to preserve its current policy at the February 5 meeting.

According to a Bloomberg News survey, all of the 41 economists polled anticipate the Monetary Policy Committee (MPC) to retain a wait-and-see approach, and the central bank may once again refrain from releasing a policy statement as it remains in no rush to normalize monetary policy. Even though BoE Governor Mark Carney continues to prepare U.K. households and businesses for higher borrowing-costs, the committee may further delay its normalization cycle especially as price growth undershoots the 2% target.

With that said, the BoE may curb its economic assessment while delivering the quarterly Inflation report on February 12, but we may see a growing number of MPC officials show a greater willingness to raise the benchmark interest rate over the medium-term as the central bank anticipates a stronger recovery to take hold in 2015. In turn, the ongoing improvement in the labor market may continue to encourage expectations for faster wage growth, and the central bank may sound more upbeat this time around as it sees weaker energy prices as a net positive for the U.K. economy.

Nevertheless, GBP/USD may continue to carve a string of lower-highs in the week ahead as market participants speculate the Federal Reserve to normalize monetary policy ahead of its U.K. counterpart, and the pair remains at risk for a further decline over the near-term as the Relative Strength Index (RSI) largely preserves the bearish momentum carried over from the previous year.

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

DISCLOSURES

News & Analysis at your fingertips.