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
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
GBP/USD
Bearish
USD/JPY
Mixed
Gold
Bearish
Oil - US Crude
Mixed
Bitcoin
Bullish
More View more
Breaking news

ECB leaves all rates unchanged in line with expectations

Real Time News
  • Some ECB officials wanted Lagarde to cite risks on subzero rates -BBG
  • Update on #Cryptocurrencies #BITCOIN +0.14% #BITCOINCASH +0.54% #ETHEREUM +0.84% #RIPPLE -0.54% #LITECOIN -0.15%
  • $USDCAD had shot-up to test resistance in a prior zone of support after the Friday employment releases, and sellers have since come back to re-test monthly lows following yesterday’s #FOMC rate decision. More from @JStanleyFX here:https://t.co/QuRR2gnJT8 https://t.co/EnGJyGzOIG
  • US 30-Year Bonds Draw 2.307% Primary Dealers Awarded: 15.5% Direct Bidders Awarded: 21.1% Indirect Bidders Awarded: 63.4% B/C Ratio: 2.46
  • LIVE NOW: Join @JStanleyFX as he runs through price action set-ups for the FX and CFDs market. https://www.dailyfx.com/registerToSeminar?webinar=3952937094787220994&utm_source=Twitter&utm_medium=DFXGeneric&utm_campaign=twr
  • here we go, starting now -> https://www.dailyfx.com/webinars/643096611 https://t.co/bNQQ0K2hwF
  • LIVE IN 5 MINUTES: Join @JStanleyFX as he runs through price action set-ups for the FX and CFDs market. https://www.dailyfx.com/registerToSeminar?webinar=3952937094787220994&utm_source=Twitter&utm_medium=DFXGeneric&utm_campaign=twr
  • Trump to discuss China trade issues with advisers this afternoon -BBG
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 97.67%, while traders in France 40 are at opposite extremes with 77.30%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/tfwztUY3jx
  • LIVE IN 15 MINUTES: Join @JStanleyFX as he runs through price action set-ups for the FX and CFDs market. https://www.dailyfx.com/registerToSeminar?webinar=3952937094787220994&utm_source=Twitter&utm_medium=DFXGeneric&utm_campaign=twr
GBP to Face Larger Advance on Hawkish BoE, Stronger UK Wage Growth

GBP to Face Larger Advance on Hawkish BoE, Stronger UK Wage Growth

2015-07-10 20:20:00
David Song, Currency Strategist
Share:
GBP to Face Larger Advance on Hawkish BoE, Stronger UK Wage Growth

GBP to Face Larger Advance on Hawkish BoE, Stronger UK Wage Growth

Fundamental Forecast for British Pound: Bullish

The narrowing risk for a Euro-Zone breakup paired with signs of a stronger U.K. recovery should heighten the appeal of the British Pound as the Bank of England (BoE) remains on course to raise the benchmark interest rate off of the record-low.

A Greek deal should keep the Monetary Policy Committee (MPC) on course to normalize monetary policy as Governor Mark Carney sees ‘solid’ growth in the U.K. economy, and the central bank head may continue to prepare households and businesses for higher borrowing-costs as BoE officials are scheduled to testify in front of the House of Commons Treasury Committee next week. At the same time, the fresh batch of central bank rhetoric may highlight a greater dissent within the MPC as a growing number of BoE officials adopt an improved outlook for the region, and the key data prints due out in the days ahead may put increased pressure on the committee to deliver a rate hike in 2015 as the outlook for growth and inflation improves.

Even though the headline reading for the U.K. Consumer Price Index (CPI) is expected to hold flat in June, stickiness in the core rate of inflation may keep the sterling afloat, and market participants may show a more meaningful reaction to the Jobless Claims report as Average Weekly Earnings are projected to expand an annualized 3.0% in May after climbing 2.7% the month prior. A marked pickup in wage growth should raise the BoE’s scope to achieve the 2% inflation target over the policy horizon, and the pound-dollar may continue to retrace the decline from July 2014 amid the tightening race with the Federal Reserve to normalize monetary policy.

With that said, the recent price action in GBP/USD also highlights the risk for a further appreciation in the exchange rate as the pair retains the upward trend carried over from May, and the pound-dollar appears to have carved a near-term low around the 1.5330 region (78.6% Fibonacci retracement) as the Relative Strength Index (RSI) threatens the bearish momentum carried over from the previous month. - DS

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

DISCLOSURES

News & Analysis at your fingertips.