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
Gold
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
  • NY Fed accepts $909.44 billion in reverse repo operations $USD $DXY
  • RT @IG_US: Watch @GuyAdami & @RiskReversal discuss - Earnings Recap - Rates In Reverse - Economic Slowdown? - Plus strategist @CVecchioFX…
  • Bitcoin and Ethereum are both recovering from the early-summer slumps that enveloped the crypto market. Get your market update from $btc market update from @JStanleyFX here:https://t.co/kgPJfJKptS https://t.co/hII11U0POd
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 92.90%, while traders in France 40 are at opposite extremes with 82.15%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/Y0B0I5qE0y
  • $USD still sticking to the range. I'd be surprised if this holds until #NFP on Friday. But at the least there's some definition to work off of $DXY https://t.co/kHZnEFP1AX https://t.co/jkE2gugZpL
  • Commodities Update: As of 16:00, these are your best and worst performers based on the London trading schedule: Silver: 0.43% Gold: -0.18% Oil - US Crude: -0.90% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/zbfas5ZeLn
  • SEC Chair Gensler: - SEC will take powers "as far as they go" when regulating crypto - I am looking forward to reviewing filings for Bitcoin ETFs
  • SEC Chair Gensler: - We don't have enough investor protection in crypto - Crypto trading platforms require compliance with securities law
  • $ES slingshot right back to 4400, now testing underside of tl $SPX $SPY https://t.co/C8MKSlhDYU https://t.co/afOW3tDMko
  • SEC Chair Gensler: - Crypto trading, lending, and decentralized finance platforms should be top priority for oversight - Stock tokens, stable value tokens backed by securities and all virtual products providing exposure to underlying securities fall under SEC oversight
GBP/USD Rebound at Risk as BoE Speaks on U.K. Referendum

GBP/USD Rebound at Risk as BoE Speaks on U.K. Referendum

David Song, Strategist
GBP/USD Rebound at Risk as BoE Speaks on U.K. ReferendumGBP/USD Rebound at Risk as BoE Speaks on U.K. Referendum

Fundamental Forecast for British Pound: Bearish

For more updates, sign up for David's e-mail distribution list!

After posting the first five-consecutive days of advances since June, GBP/USD stands at risk facing near-term headwinds should Bank of England (BoE) officials endorse a wait-and-see approach ahead of their next interest rate decision on March 17.

With BoE Governor Mark Carney and Co. schedule to speak on the U.K.’s EU-membership on March 8, the fresh comments coming out of the Parliament hearing may dampen the appeal of the sterling should the central bank show a greater willingness to further delay its normalization cycle. Indeed, the Monetary Policy Committee (MPC) may keep the benchmark interest rate at the record-low throughout 2016 as the economic outlook for the region becomes increasingly clouded with high uncertainty. As a result, the near-term rebound in Cable may largely unravel over the coming days should the BoE curb market expectations for a rate-hike in 2016.

At the same time, key speeches by Fed Vice-Chair Stanley Fischer and Governor Lael Brainard may also drag on GBP/USD as the Federal Open Market Committee (FOMC) continues to prepare households and businesses for higher borrowing-costs, and the bearish trend in GBP/USD may reassert itself especially as the U.S. economy approaches ‘full-employment.’ The 242K expansion in U.S. Non-Farm Payrolls (NFP) accompanied by the larger-than-expected pickup in the Labor Force Participation Rate may put increased pressure on the FOMC to further normalize monetary policy over the coming months as Chair Janet Yellen remains confident in achieving the 2% inflation-target over the policy horizon.

With that said, the broader outlook for GBP/USD remains tilted to the downside as the BoE lags behind its U.S. counterpart, and the pair may continue to carve a long-term series of lower highs & lows as the threat of an EU exit dampens the fundamental outlook for the U.K.

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

DISCLOSURES