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.



Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
Oil - US Crude
Wall Street
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
  • Singapore stock market saw institutional money inflow for 4 weeks in a row, with S$ 329 million pumping in last week. Fund manager's top picks include banks, aviation, real estate and entertainment stocks - SGX data
  • Forex Update: As of 03:00, these are your best and worst performers based on the London trading schedule: 🇳🇿NZD: 0.30% 🇦🇺AUD: 0.28% 🇪🇺EUR: 0.27% 🇨🇦CAD: 0.25% 🇨🇭CHF: 0.22% 🇯🇵JPY: -0.05% View the performance of all markets via
  • Heads Up:🇦🇺 RBA Interest Rate Decision due at 03:30 GMT (15min) Expected: 0.10% Previous: 0.1%
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 94.24%, while traders in NZD/USD are at opposite extremes with 73.51%. See the summary chart below and full details and charts on DailyFX:
  • Did you know a Doji candlestick signals market indecision and the potential for a change in direction. What are the top five types of Doji candlesticks? Find out
  • Japanese Finance Minister Aso says overall the financial system is stable - BBG
  • Join @DanielGMoss's #Webinar at 10:00 PM ET/3:00 AM GMT for his weekly coverage of trading prep for $AUDUSD in the week ahead. Register here:
  • South Korean President Moon Jae-in: - Revised GDP shows swift economic recovery underway - Retail investors have supported the South Korean stocks markets - BBG
  • Knowing how to accurately value a stock enables traders to identify and take advantage of opportunities in the stock market. Find out the difference between a stock's market and intrinsic value, and the importance of the two here:
  • Wall Street Futures Update: Dow Jones (+0.513%) S&P 500 (+0.628%) Nasdaq 100 (+0.755%) [delayed] -BBG
British Pound Risks Near-Term Correction on Rising U.K. Inflation

British Pound Risks Near-Term Correction on Rising U.K. Inflation

2016-04-09 00:17:00
David Song, Strategist
British Pound Risks Near-Term Correction on Rising U.K. InflationBritish Pound Risks Near-Term Correction on Rising U.K. Inflation

Fundamental Forecast for British Pound: Neutral

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

The Bank of England’s (BoE) April 14 policy meeting may spur a limited market reaction as the central bank is widely anticipated to retain its current policy ahead of the referendum in June, but signs of sticky U.K. inflation accompanied by dovish comments from Fed officials may generate a near-term rebound in GBP/USD as U.S. interest-rate expectations falter.

Even though the BoE is largely expected to preserve a wait-and-see approach throughout the first-half of 2016, Governor Mark Carney and Co. may sound more hawkish this time around especially as the core U.K. Consumer Price Index (CPI) is projected to uptick to an annualized 1.3% from 1.2% in February. Indeed, heightening price pressures along with the depreciation in the sterling may foster increased concerns of overshooting the 2% inflation target over the policy horizon, but the risk of decoupling from the European Union may generate another unanimous vote to retain the record-low interest rate even as the Monetary Policy Committee (MPC) remains upbeat on the U.K. economy.

At the same time, the fundamental developments coming out of the U.S. may put increased pressure on the Federal Reserve to normalize monetary policy as Retail Sales are projected to rebound in March, while the core rate of consumer-price inflation is projected to hold steady at an annualized 2.3% in March. Even though the world’s largest economy approaches ‘full-employment,’ fresh rhetoric from New York Fed President William Dudley, Dallas Fed President Robert Kaplan, Philadelphia Fed President Patrick Harker, San Francisco Fed President John Williams, Richmond Fed President Jeffrey Lacker, Atlanta Fed President Dennis Lockhart, Chicago Fed President Charles Evans and Fed Governor Jerome Powell may highlight a further delay in the normalization cycle as the central bank continues to monitor the external risks surrounding the region.

With that said, concerns of stronger U.K. inflation paired with more dovish remarks from Fed officials may generate a short-term correction in GBP/USD as the pair consolidates with the March range. However, headlines fueling fears of a U.K. exit may push the exchange rate back below the 1.4000 handle as a departure from the EU could spur a material shift in the monetary policy outlook even as the BoE continues to argue that the next move will be to remove record-low borrowing-costs.

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