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
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
Wall Street
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
Gold
Bearish
GBP/USD
Bearish
USD/JPY
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
More View more
Real Time News
  • #FTSE 100 and S&P 500 could have room for weakness ahead as the #CAC 40 attempts to climb towards key resistance. Get your European #equities update from @ddubrovskyFX here:https://t.co/gepciUHqxT https://t.co/j1ONIxOoT7
  • Market snapshot: #AUD, #NZD edging slightly lower while US equity futures are trading mixed.
  • Update on #Cryptocurrencies #BITCOIN +3.19% #BITCOINCASH +1.80% #ETHEREUM +2.25% #RIPPLE +1.07% #LITECOIN +2.33%
  • $EURUSD Daily Pivot Points: S3: 1.0802 S2: 1.0883 S1: 1.0933 R1: 1.1014 R2: 1.1046 R3: 1.1127 https://www.dailyfx.com/pivot-points?ref=SubNav?utm_source=Twitter&utm_medium=DFXGeneric&utm_campaign=twr
  • So far this week, those fortunes have flipped as the Nasdaq is working on its second consecutive down-day while the Dow has, so far, rallied through both sessions. Get your #equities technical analysis from @JStanleyFX here:https://t.co/uafQxTayEY https://t.co/7iGh15koeL
  • That was an impressive recovery from the #SP500 during the #WallStreet session. What's interesting to see is the pro-risk #AUD and #NZD being unable to capitalize nearly as much versus stocks. Could momentum be fading? #USD $AUDUSD $NZDUSD https://t.co/YBg6wzgG2i
  • The U.S. House passes the Uyghur Human Rights Policy Act $FXI $USDCNH
  • Forex Update: As of 20:00, these are your best and worst performers based on the London trading schedule: 🇪🇺EUR: 0.25% 🇨🇦CAD: 0.20% 🇯🇵JPY: -0.16% 🇨🇭CHF: -0.27% 🇦🇺AUD: -0.43% 🇬🇧GBP: -0.60% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/WUkvzm2KzY
  • Silver has been beaten handily by gold in the rush to haven assets inspired by the contagion. However, the gold/silver ratio was rising steadily before this crisis and will probably continue to do so. Get your #silver market update from @DavidCottleFX here:https://t.co/00DiZn6XZS https://t.co/ygkaj7nHr6
  • Commodities Update: As of 20:00, these are your best and worst performers based on the London trading schedule: Silver: 0.83% Gold: 0.06% Oil - US Crude: -2.72% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/fmPVQRIybZ
British Pound to Lose Further Unless the FTSE 100 Bounces Sharply

British Pound to Lose Further Unless the FTSE 100 Bounces Sharply

2016-01-15 22:47:00
David Song, Strategist
Share:
British Pound to Lose Further Unless the FTSE 100 Bounces SharplyBritish Pound to Lose Further Unless the FTSE 100 Bounces Sharply

Fundamental Forecast for British Pound: Bearish

Even though the Bank of England (BoE) meeting revealed another 8 to 1 split within the central bank, the British Pound may face additional headwinds next week and extend the decline from earlier this month should the fundamental developments coming out of the U.K. drag on interest rate expectations.

The U.K. Consumer Price Index (CPI) is expected to show the headline reading advancing an annualized 0.2% in December, with the core rate of inflation seen steady at 1.2% but, a marked slowdown in Average Weekly Earnings may put increased pressure on the Monetary Policy Committee (MPC) to further delay the normalization cycle as the central bank struggles to achieve its 2% target for price growth. With BoE officials highlighting the downside risk for growth and inflation, signs of a slower recovery may further dampen the appeal of the sterling as Governor Mark Carney appears to be in no rush to lift the benchmark interest rate off of the record-low.

At the same time, the U.S. CPI report may also fuel a further decline in GBP/USD as the headline and core rate of inflation is anticipated to pick up during the same period, and signs of rising price pressures may prompt the Fed implement another rate-hike in the first-half of 2016 as Chair Janet Yellen remains upbeat on the economy. However, the ongoing decline in energy prices may become a growing concern for the Federal Open Market Committee (FOMC) as central bank hawk James Bullard warns that the weakness may not be transitory and start to impact real economy. In turn, a dismal inflation report may spur a shift in the Fed’s language and the committee may sound more cautious at the January 27 interest rate decision as it undermines the central bank’s scope to achieve its dual mandate for full-employment and price stability.

Nevertheless, the longer-term outlook for GBP/USD remains tilted to the downside with the BoE largely retaining a wait-and-see approach, while the Fed appears to be on course to implement higher borrowing-costs over the coming months. The Relative Strength Index (RSI) on GBP/USD suggests that the near-term selloff may have continue to gather pace in the days ahead especially as the oscillator pushes deeper into oversold territory and approaches the lowest level since September 2014.

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

DISCLOSURES

News & Analysis at your fingertips.