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.

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
EUR/USD
Mixed
Oil - US Crude
Mixed
Wall Street
Bearish
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
Gold
Mixed
GBP/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
USD/JPY
Bullish
More View more
Real Time News
  • Fed's Brainard: -Enhanced jobless benefits don't appear to be holding back job seeking -Good reason to think higher inflation will be transitory -Would not hesitate to act if inflation flared too much -Household balance sheets look 'extremely healthy,' doesn't see housing bubble
  • USD/CAD appears to be on track to test the September 2017 low (1.2061) after clearing the January 2018 low (1.2247). Get your $USDCAD market update from @DavidJSong here:https://t.co/wIA51KNqNz https://t.co/oREPYOH46E
  • Commodities Update: As of 16:00, these are your best and worst performers based on the London trading schedule: Silver: 0.75% Oil - US Crude: 0.06% Gold: -0.06% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/nPjfZ8pcg5
  • Fed's Brainard: - Important to communicate clearly when substantial further progress on goals has been made - Says outlook is bright, expects to continue making progress on Fed goals, but still far from reaching that point - Labor demand and supply recovering at different speeds
  • ECB's Knot: - Banks have withstood covid stress test 'pretty well' - Ground for euro-area recovery is getting firmer - Pent up demand is 'significant' upside risk $EUR $EURUSD $EURGBP
  • Forex Update: As of 16:00, these are your best and worst performers based on the London trading schedule: 🇪🇺EUR: 0.31% 🇬🇧GBP: 0.24% 🇯🇵JPY: 0.24% 🇳🇿NZD: 0.07% 🇨🇦CAD: 0.06% 🇨🇭CHF: -0.14% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/rBmlc0ErCB
  • Fed's Brainard: -April jobs data was a reminder that the recovery will be uneven, hard to predict -Strong rebound in hiring still likely -Fed policy driven by economy's actual performance is right strategy -Temporary jump in inflation unlikely to undo longer trends
  • Fed's Brainard: -Inflation tough to predict, may be transitory -Important to stay patiently focused on reaching goals -Data shows price expectations well anchored at 2% -Fed has tools and will react if inflation accelerates too much -Supply/Demand bottlenecks add to uncertainty
  • Indices Update: As of 16:00, these are your best and worst performers based on the London trading schedule: Germany 30: 0.23% FTSE 100: 0.20% France 40: 0.18% US 500: -0.95% Wall Street: -1.32% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/0hpabRfty5
  • Heads Up:🇺🇸 Fed Brainard Speech due at 16:00 GMT (15min) https://www.dailyfx.com/economic-calendar#2021-05-11
British Pound Shows Signs of Life – Next Week Could be Big

British Pound Shows Signs of Life – Next Week Could be Big

David Rodriguez, Head of Product
British Pound Shows Signs of Life – Next Week Could be BigBritish Pound Shows Signs of Life – Next Week Could be Big

Fundamental Forecast for British Pound: Bullish

A volatile week of FX trading pushed the British Pound to fresh six-month lows versus the US Dollar, but a late reversal suggests that the GBP/USD ‘Pounding’ may soon come to an end. We’ll look to a busy UK economic calendar to drive near-term moves in the Sterling.

Traders will keep a close eye on an upcoming Bank of England monetary policy decision and scheduled central bank commentary as catalysts for further British Pound volatility. The Bank of England is very widely expected to leave interest rates and its quantitative easing measures unchanged at its December 10 meeting, and the bank does not release meaningful post-decision commentary following inaction. Thus we’ll look to the release of minutes from the BoE Financial Policy Committee’s November meeting as well as planned public speeches from Governor Mark Carney on December 7th and 11th for clues on the future of UK monetary policy.

The key question is simple: will the Bank next move to raise interest rates and, if so, when? A surprising result from the past week’s European Central Bank interest rate decision had a similarly surprising effect on Bank of England rate expectations; the ECB failed to cut interest rates as much as traders had priced in. An immediate jump in broader Euro Zone yields helped the benchmark 2-year UK Government bond yield to its largest single-day gain in over two months. And just as significantly, GBP interest rate futures now predict that the BoE will raise rates a full month sooner than previously expected.

It seems unlikely that Bank of England Governor Carney will admit that ECB inaction increases pressure on the UK central bank, but any hints of a hawkish shift could boost the British Pound further off of recent lows versus the US Dollar. And indeed a reversal off of key GBP/USD technical support levels suggests that the pair may continue higher.

It could be another important week for the Sterling, but traders should likewise note that trading conditions may deteriorate into the final weeks of the year. Traders should likely avoid using excess leverage and look to employ smaller position sizes given appreciable financial risks ahead.

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

DISCLOSURES