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
Mixed
Oil - US Crude
Bearish
Wall Street
Mixed
Gold
Mixed
GBP/USD
Bullish
USD/JPY
Mixed
More View more
Real Time News
  • Heads Up:🇳🇿 Building Permits MoM due at 22:45 GMT (15min) Previous: -21.3% https://www.dailyfx.com/economic-calendar#2020-06-01
  • #Gold prices have rallied by as much as 3% from the Wednesday low up to this morning’s high, and price action is tip-toeing up to that $1750 psychological level that’s proven so difficult to break. Get your $XAUUSD technical analysis from @JStanleyFX here:https://t.co/MIbZgve7Pi https://t.co/ml6G1N0b7V
  • RT @realDonaldTrump: I will be delivering brief remarks from the Rose Garden at 6:30 P.M. Eastern to update on the Federal Response.
  • US Dollar weakness continues as selling pressure sustained over the last five trading sessions steers the DXY Index 2% lower. Get your $USD currency pairs market update from @RichDvorakFX here:https://t.co/LLlcezQmXK https://t.co/ln5dqmkCPr
  • The Canadian Dollar rally has taken USD/CAD into a key near-term support zone and we’re looking for a reaction down here today. Get your $USDCAD technical analysis from @MBForex here: https://t.co/xfYtytf4wF https://t.co/qfWjha3h37
  • Gold Price Outlook: Gold Goes Overbought, Finds Fibonacci Resistance https://www.dailyfx.com/forex/fundamental/daily_briefing/session_briefing/daily_fundamentals/2020/06/01/Gold-Price-Outlook-Gold-Goes-Overbought-JS-Finds-Fibonacci-Resistance.html https://t.co/dDQOzcMPxc
  • Forex Update: As of 20:00, these are your best and worst performers based on the London trading schedule: 🇦🇺AUD: 1.93% 🇨🇦CAD: 1.44% 🇳🇿NZD: 1.42% 🇪🇺EUR: 0.26% 🇯🇵JPY: 0.20% 🇨🇭CHF: 0.04% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/GhC3QOpAvG
  • Commodities Update: As of 20:00, these are your best and worst performers based on the London trading schedule: Silver: 2.19% Gold: 0.56% Oil - US Crude: 0.41% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/WWjnR6G4UC
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 96.70%, while traders in US 500 are at opposite extremes with 77.26%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/Pw2G0PKgZJ
  • The US Congressional Budget Office has updated its economic forecasts. Says it could take 10 years to recover from the Coronavirus impact, reducing real GDP by potentially 3% or $7.9tln through 2030
GBP/USD Rebound at Risk as BoE Speaks on U.K. Referendum

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

2016-03-04 22:48:00
David Song, Strategist
Share:
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

News & Analysis at your fingertips.