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
Bullish
Gold
Mixed
GBP/USD
Bearish
USD/JPY
Mixed
More View more
Real Time News
  • Another look at the deviation in 'internal' interest in US equities: the candle is the Nasdaq 100 to S&P 500 ratio ($NDX-$SPX) overlaid with the S&P 500 itself in blue https://t.co/m2WK4Q2Bs5
  • A notable deviation in direction from the tech-heavy Nadex composite (candle) overlaid with the S&P 500 in blue. The 5-day correlation is still holding up but will start deviating fast at this pace https://t.co/VYY5imk1yS
  • $USD has been pretty strong over the past couple of weeks and to a lesser degree, so far in 2021 but we've only retraced about 23.6% of that massive sell-off that started last March $DXY https://t.co/t5KRSYu0TP
  • EUR/USD trades to a fresh yearly low (1.1857) as longer-dated US Treasury yields continue to push above pre-pandemic levels. Get your $EURUSD market update from @DavidJSong here:https://t.co/XWIah8irtj https://t.co/GIXPFZz2qQ
  • USD/MXN has continued to rip in 2021, flying in the face of the bearish trend from 2020. Get your $USDMXN market update from @JStanleyFX here:https://t.co/uePriXERH8 https://t.co/qRjLbgglov
  • $USDMXN strong breakout from the falling wedges that had built coming into this year. Prices now finding resistance at 50% marker of the 2017-2020 major move whether looking for usd strength or weakness, there's attractive items on $USDMXN for either https://www.dailyfx.com/forex/fundamental/daily_briefing/session_briefing/daily_fundamentals/2021/03/08/Mexican-Peso-Price-Forecast-MXN-USDMXN-USD-MXN-Breakout-to-Fibonacci-Resistance.html https://t.co/7TwqgZDXfH https://t.co/ocsiEw3IwC
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 92.37%, while traders in Germany 30 are at opposite extremes with 81.20%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/2V8w40M0zN
  • Commodities Update: As of 17:00, these are your best and worst performers based on the London trading schedule: Silver: -0.10% Gold: -1.18% Oil - US Crude: -1.45% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/710wPcmn9S
  • Lord Frost accuses the EU of ‘ill will’ as Brexit row rumbles on. @bankofengland governor Andrew Bailey gives his latest thoughts on the economy. Get your market update from @nickcawley1 here:https://t.co/Z4gAzLjtjx https://t.co/MyIHkCORSH
  • Forex Update: As of 17:00, these are your best and worst performers based on the London trading schedule: 🇨🇦CAD: -0.09% 🇬🇧GBP: -0.14% 🇦🇺AUD: -0.30% 🇨🇭CHF: -0.51% 🇳🇿NZD: -0.51% 🇪🇺EUR: -0.52% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/djHLmI2sna
GBP/USD to Rebound to Succumb to Dovish BoE, Upbeat NFP Report

GBP/USD to Rebound to Succumb to Dovish BoE, Upbeat NFP Report

David Song, Strategist
GBP/USD to Rebound to Succumb to Dovish BoE, Upbeat NFP ReportGBP/USD to Rebound to Succumb to Dovish BoE, Upbeat NFP Report

Fundamental Forecast for British Pound: Neutral

The Bank of England (BoE) interest rate decision is likely to heavily impact the British Pound next week with the central bank schedule to release its updated forecasts, and the near-term rebound in GBP/USD may continue to unravel should the Monetary Policy Committee (MPC) show a greater willingness to further delay the normalization cycle.

The BoE meeting may reveal another 8 to 1 split within the committee as Ian McCafferty sees a risk of overshooting the 2% inflation target in the medium-term, but the majority may continue to endorse a wait-and-see approach as core rate of price growth ‘remains relatively subdued – a consequence of the past appreciation of sterling, weak global inflation and restrained domestic cost growth.’ With the 4Q U.K. Gross Domestic Product (GDP) print highlighting the slowest pace of growth since 2013, the BoE’s quarterly inflation report (QIR) may discourage bets for a rate-hike in 2016 should Governor Mark Carney and Co. curb their economic outlook for the U.K.

In contrast, the Federal Open Market Committee (FOMC) may stay on course to implement higher borrowing-costs over the coming months as the U.S. Non-Farm Payrolls (NFP) report is anticipated to show another 190K expansion in January, and the 2016 voting-members may take a more proactive approaching in preparing households and businesses for higher borrowing-costs especially as the economy approaches ‘full-employment.’ However, a slowdown in Average Hourly Earnings may keep the Fed on the sidelines throughout the first-half of 2016 as it undermines the central bank’s pledge to achieve its price stability mandate, and the next interest rate decision on March 16 may undermine the bullish sentiment surrounding the dollar should the committee endorse a wait-and-see approach.

Nevertheless, the longer-term outlook for GBP/USD remains tilted to the downside as the BoE continues to lag behind its U.S. counterpart, and the near-term rebound in the exchange rate may continue to unravel in the days ahead should we get more of the same from the MPC. At the same time, the Fed may have little choice but to stay committed to its normalization cycle amid the ongoing improvement in the labor market.

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

DISCLOSURES