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
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
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
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
Bearish
GBP/USD
Bullish
USD/JPY
Bearish
More View more
Real Time News
  • It’s important for traders to be familiar with FX spreads as they are the primary cost of trading currencies. Understand a pair's spread here: https://t.co/zEEUHZjVIG https://t.co/oZPoyPH2iw
  • Using margin in forex trading is a new concept for many traders, and one that is often misunderstood. Margin is the minimum amount of money required to place a leveraged trade and can be a useful risk management tool. Learn about margin trading here: https://t.co/qZCE5asCzM https://t.co/yN1I9FrfIS
  • There’s a strong correlation between interest rates and forex trading. Forex is ruled by many variables, but the interest rate of the currency is the fundamental factor that prevails above them all. Learn how interest rates impact currency markets here: https://t.co/5l3O9aHQbL https://t.co/DFEfCIl7zF
  • Thin liquidity can concentrate volatility and nowhere is that more evident than with Dogecoin. $DOGEUSD was down as much as 38% today. Watch for heightened bouts of volatility amid quiet risk trends in the week ahead: https://www.dailyfx.com/forex/video/daily_news_report/2021/04/17/Dollar-Outlook-Ties-Into-Key-Data-Rate-Forecasts-and-Even-Dogecoins-Rally-.html https://t.co/JO7O7zUKe9
  • It’s important for traders to be familiar with FX spreads as they are the primary cost of trading currencies. Understand a pair's spread here: https://t.co/zEEUHZjVIG https://t.co/Vv3jZNbLWg
  • Many people are attracted to forex trading due to the amount of leverage that brokers provide. Leverage allows traders to gain more exposure in financial markets than what they are required to pay for. Learn about FX leverage here: https://t.co/BdgFmkzWwW https://t.co/9j004hyzUZ
  • Learning how to trade does not have to feel foreign. Hone your skills and build your confidence with free DailyFX guides today! https://t.co/lnxaQOsgid https://t.co/7myL4vGnt8
  • Using margin in forex trading is a new concept for many traders, and one that is often misunderstood. Margin is the minimum amount of money required to place a leveraged trade and can be a useful risk management tool. Learn about margin trading here: https://t.co/qZCE5asCzM https://t.co/yxE0OmLIP0
  • Entry orders are a valuable tool in forex trading. Traders can strategize to come up with a great trading plan, but if they can’t execute that plan effectively, all their hard work might as well be thrown out. Learn how to place entry orders here: https://t.co/1mnOXUd00T https://t.co/iSrjZTeWwf
  • There are many different types of forex orders, which traders use to manage their trades. While these may vary between different brokers, there tends to be several basic FX order types all brokers accept. Learn about different FX order types here: https://t.co/WeLInepZiD https://t.co/7B0KI8HehW
GBP/USD Rebound to Accelerate on Sticky UK CPI, Shift in FX Sentiment

GBP/USD Rebound to Accelerate on Sticky UK CPI, Shift in FX Sentiment

David Song, Strategist
GBP/USD Rebound to Accelerate on Sticky UK CPI, Shift in FX SentimentGBP/USD Rebound to Accelerate on Sticky UK CPI, Shift in FX Sentiment

Fundamental Forecast for British Pound: Bullish

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

The near-term rebound in GBP/USD may gather pace in the week ahead should the key developments coming out of the U.K. economy put increased pressure on the Bank of England (BoE) to normalize monetary policy sooner rather than later.

Despite expectations for a 1.0% decline in U.K. Retail Sales, stickiness in the core Consumer Price Index (CPI) may heighten the appeal of the British Pound and generate a larger recovery in GBP/USD as the BoE argues that the next move will be to normalize monetary policy. Indeed, the U.K. referendum is likely to keep the Monetary Policy Committee (MPC) on the sidelines throughout the first-half of 2016 as the board votes unanimously to retain the current policy in March, but signs of stronger-than-expected price growth may encourage Governor Mark Carney and Co. to adopt a more hawkish tone over the coming months especially as the central bank sees a risk of overshooting the 2% inflation-target over the policy horizon.

At the same time, the recent weakness in the greenback may contribute to a further appreciation in GBP/USD as the Federal Reserve cuts its growth and inflation forecast, with central bank officials laying out a more gradual path for future interest rates. Even though the U.S. economy approaches ‘full-employment,’ Fed Chair Janet Yellen may further tame interest-rate expectations and endorse a wait-and-see approach for most of 2016 as the central bank continues to monitor the external risks surrounding the region. As a result, the dollar stands at risk of facing additional headwinds over the near to medium-term as market participants scale back bets for higher borrowing-costs this year.

In turn, a slew of positive U.K. data prints accompanied by waning U.S. interest-rate expectations may fuel a further short-squeeze in GBP/USD as there appears to be a shift in market positioning. According to the DailyFX Speculative Sentiment Index (SSI), the FX crowd has been net-long GBP/USD since November 19, but recent updates have shown a material shift in retail bias as the ratio continues to narrow from the extreme readings registered in January.

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

DISCLOSURES