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
  • Are you new to trading? Technical analysis of charts aims to identify patterns and market trends by utilising different forms of technical chart types and other chart functions. Get a refresher on technical analysis or begin building your knowledge here: https://t.co/qV3c7a4YR3 https://t.co/2Qka1WPhnE
  • Entry orders are a valuable tool in forex trading. Traders can strategize to come up with a great trading plan, but if they can’t execute that plan effectively, all their hard work might as well be thrown out. Learn how to place entry orders here: https://t.co/1mnOXUuBpt https://t.co/kloJCFmJty
  • The continuity seen across these volatility cycles is a good thing. Historical precedence offer a blueprint for identifying conditions supportive for a vol-event to occur, and how they may unfold. Deepen your knowledge of historical volatility here: https://t.co/vg7w10la3j https://t.co/wwxKQFibW6
  • *Reminder: Weekly Strategy Webinar tomorrow morning at 8:30am EST on DailyFX! A look at the levels heading into #FOMC - https://t.co/lxd5fZnn4H
  • Key levels in forex tend to draw attention to traders in the market. These are psychological prices which tie into the human psyche and way of thinking. Learn about psychological levels here: https://t.co/8A1QhwMVKo https://t.co/Nx6AHxZksK
  • Markets Week Ahead: Euro, Dollar, Gold, S&P 500, Earnings, Inflation Check out @RichDvorakFX's latest market recap and preview plus all the weekly forecasts from the @DailyFXTeam at the link below! Link to Analysis - https://www.dailyfx.com/forex/fundamental/forecast/weekly/title/2021/07/25/markets-week-ahead-euro-dollar-gold-sp500-fed-earnings-inflation.html $EURUSD $SPX #Trading
  • Looking for a new way to trade reversals? One of the most used reversal candle patterns is known as the Harami. Like most candlestick formation patterns, the Harami tells a story about sentiment in the market. Get better with trading reversals here: https://t.co/rfwUWJfbz9 https://t.co/xKkBwu951j
  • The non-farm payroll (NFP) figure is a key economic indicator for the United States economy. It is also referred to as the monthly market mover. Find out why it has been given this nickname here: https://t.co/yOUVEEqhc5 https://t.co/MYWlQphqtb
  • Knowing how to accurately value a stock enables traders to identify and take advantage of opportunities in the stock market. Find out the difference between a stock's market and intrinsic value, and the importance of the two here: https://t.co/QszmdZFxlk https://t.co/paOy1oQmn3
  • US indices have a packed week ahead with earnings from the major technology names, US GDP data due and an FOMC rate decision. With so much on the docket the potential for volatility is heightened. Get your stock market forecast from @PeterHanksFX here: https://t.co/CH4WoStHvu
GBP/USD Searches for Support as Rebound Unravels- GDP, Fed in Focus

GBP/USD Searches for Support as Rebound Unravels- GDP, Fed in Focus

David Song, Strategist
GBP/USD Searches for Support as Rebound Unravels- GDP, Fed in FocusGBP/USD Searches for Support as Rebound Unravels- GDP, Fed in Focus

Fundamental Forecast for British Pound:Neutral

GBP/USD stands at risk of facing increased volatility in the week ahead as market attention turns to the Federal Reserve’s October 28 interest rate decision, while the U.S. & U.K. are scheduled to release their Gross Domestic Product (GDP) reports for the third-quarter of 2015.

Indeed, the fresh rhetoric coming out of the Federal Open Market Committee (FOMC) may heighten the appeal of the U.S. dollar should the central bank keep the door open for a 2015 rate-hike. Comments reflecting a greater willingness to remove the zero-interest rate policy (ZIRP) may encourage bets for a more aggressive normalization cycle, and market participants may position for a resumption of the long-term bullish trend in the greenback as Chair Janet Yellen remains upbeat on the economy. However, another 9-1 split accompanied by greater concerns regarding the disinflationary environment may drag on interest rate expectations, and the near-term advance in the reserve currency may largely unravel should the Fed show a greater disposition to carry its current policy into 2016.

Meanwhile, the advance U.S. GDP report is expected to show the growth rate climbing an annualized 1.6% following the 3.9% expansion in the second-quarter, and dovish Fed rhetoric paired with a marked slowdown in economic activity may produce headwinds for the dollar as it clouds the outlook for monetary policy. In contrast, the U.K. is projected to grow another 2.4% during the three-months through September, and signs of a more sustainable recovery may keep the Bank of England (BoE) on course to implement higher borrowing-costs especially as board member Kristin Forbes argues interest rates will rise ‘sooner rather than later.’ As a result, the key event risks may heavily impact the outlook for monetary policy, and the pound-dollar may largely consolidate going into the end of October should the developments highlight a tightening race between the BoE & Fed.

Nevertheless, the technical outlook for GBP/USD remains tilted to the downside as the rebound from the monthly low (1.5106) fails to spur a test of the September high (1.5658), with the pair marking multiple failed attempts to close above the 100-Day SMA (1.5490). The lack of momentum to hold above the 1.5500 handle ahead of the last week of October may highlight a near-term topping process in the exchange rate especially as the Relative Strength Index (RSI) largely preserves the bearish formation from back in May.

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

DISCLOSURES