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
EUR/USD
Mixed
Oil - US Crude
Bullish
Wall Street
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
Gold
Bullish
GBP/USD
Mixed
USD/JPY
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
  • Emotions are often a key driving force behind FOMO. If left unchecked, they can lead traders to neglect trading plans and exceed comfortable levels of risk. Read on and get your emotions in check here: https://t.co/eILWbFgHRE https://t.co/pSeSiNnmHe
  • There are three major forex trading sessions which comprise the 24-hour market: the London session, the US session and the Asian session. Learn about the characteristics of each session here: https://t.co/reRmDe1Ksp https://t.co/iVOEuK40rn
  • Implementing a trading checklist is a vital part of the trading process because it helps traders to stay disciplined, stick to the trading plan, and builds confidence. Learn how to stick to the plan, stay disciplined, and use a checklist here: https://t.co/SQUCCYRCIk https://t.co/ltEO5dpKux
  • WTI crude oil is currently trading up against major resistance via the 2019 and 2020 highs within the confines of a channel; something has to give. Get your market update from @PaulRobinsonFX here: https://t.co/MO9foRjm2y https://t.co/YhBFdvZDEb
  • The Dow Jones and S&P 500 outlook appears bleak in the near term as retail traders increase their upside exposure. At the same time, these indices confirmed bearish technical warning signs. Get your market update from @ddubrovskyFX here:https://t.co/fKCHELbOxo https://t.co/eVDwmFTaIg
  • Use this technical analysis pattern recognition skills test to sharpen your knowledge: https://t.co/Qgz89PTxnu https://t.co/8B8hqHahm1
  • The US Dollar finished off an eventful week after CPI and retail sales injected volatility into markets. FOMC is now in the Greenback’s sights as taper talks linger. Get your market update from @FxWestwater here: https://t.co/MHi0lfQ93j https://t.co/4XetwYAaNd
  • Get your snapshot update of the of market open and closing times for each major trading hub around the globe here: https://t.co/BgZLFljIhZ https://t.co/ZZRLV0Wkea
  • The Nasdaq 100 index has likely formed a bearish Gartley pattern, which hints at further downside potential. Negative MACD divergence on the weekly chart suggests that upward momentum may be fading. Get your market update from @margaretyjy here: https://t.co/GkMEkVA7YR https://t.co/E1vyCMVt6K
  • Struggling to define key levels? Floor-Trader Pivots assist traders in identifying areas in a chart where price is likely to approach and can be used to set appropriate targets, while effectively managing risk. Learn how to use this indicator here: https://t.co/Ye4m1G4lMu https://t.co/2TpkkUu7Hg
GBP/USD ‘Flash Crash’ Rebound Looks to BoE/Fed Rhetoric for Fuel

GBP/USD ‘Flash Crash’ Rebound Looks to BoE/Fed Rhetoric for Fuel

David Song, Strategist
GBP/USD ‘Flash Crash’ Rebound Looks to BoE/Fed Rhetoric for Fuel

Fundamental Forecast for GBP: Neutral

The British Pound ‘flash crash’ is likely to gain increased attention as a slew of Bank of England (BoE) officials are scheduled to speak over the days ahead, but the abrupt depreciation in the sterling may encourage the central bank to endorse a wait-and-see approach for monetary policy as it heightens the risk of overshooting the 2% target for inflation.

Fears of a ‘hard-Brexit’ may continue to weigh on the British Pound as European Union (EU) officials advocate a stern stance in the U.K.’s departure, and heightening uncertainties surrounding the economic outlook may put increased pressure on the Monetary Policy Committee (MPC) to further support the real economy especially as Chancellor of the Exchequer Philip Hammond sees the region facing a period of ‘brief turbulence’ during the transition. The fresh rhetoric from BoE Governor Mark Carney and Co. may drag on the local currency as ‘a majority of members expect to support a further cut in Bank Rate to its effective lower bound,’ but it seems as though the central bank is in no rush to implement more non-standard measures as ‘news on the near-term momentum of the UK economy had, however, been slightly to the upside relative to the August Inflation Report projections.’ Even though the broader outlook for the British Pound remains tilted to the downside, the British Pound may experience a larger correction should BoE officials soften their dovish outlook and talk down bets for an imminent rate-cut.

In regards to the U.S., the weaker-than-expected Non-Farm Payrolls (NFP) report appears to have had a limited impact on interest-rate expectations as Fed Funds Futures continue to highlight a greater than 60% probability for a December rate-hike, and central bank officials may take a more collective approach in preparing U.S. households and businesses for higher borrowing-costs as the economy approaches ‘full-employment.’ Comments from Chicago Fed President Charles Evans, Minneapolis Fed President Neel Kashkari, New York Fed President William Dudley, Kansas City Fed President Esther George, Philadelphia Fed President Patrick Harker, Boston Fed President Eric Rosengren and Chair Janet Yellen may spur a greater market reaction than the FOMC meeting minutes as the committee appears to be following a similar path to 2015, and the near-term strength in the greenback may gather pace should the key U.S. data prints reinforce expectations for a ‘moderate’ recovery. With that said, a 0.6% rebound in U.S. Retail Sales accompanied by another pickup in the U. of Michigan Confidence survey may fuel the near-term appreciation in the dollar as it boosts the outlook for growth and inflation.

GBP/USD ‘Flash Crash’ Rebound Looks to BoE/Fed Rhetoric for Fuel

The 1.2000 handle appears to be offering psychological support amid the sharp rebound following the GBP/USD ‘flash crash,’ but the broader outlook remains tilted to the downside as the exchange rate continues to carve a near-term series of lower highs & lows, while the Relative Strength Index (RSI) pushes into oversold territory. The bearish trend in price & the RSI continues to favor the approach of looking for opportunities to sell-bounces in the pound-dollar, with former support around 1.2920 (100% expansion) to 1.2950 (23.6% expansion) seen as new resistance.

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

DISCLOSURES