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
  • 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
  • Tesla boss Elon Musk is seemingly running the cryptocurrency market single-handed this week with his tweets prompting a massive sell-off before today’s sharp rally. Get your market update from @nickcawley1 here: https://t.co/qGci02osOP https://t.co/Yp24Sakrfl
  • What suits your style of trading stocks or commodities? Find out what are the differences in these two markets here: https://t.co/BnA07cMV0s https://t.co/LDP3HlN4A3
British Pound: Due For a Deeper Correction Lower

British Pound: Due For a Deeper Correction Lower

Martin Essex, MSTA, Analyst
British Pound: Due For a Deeper Correction Lower

Fundamental Forecast for GBP: Bearish

  • The British Pound hasn’t got a lot going for it at the moment, with the latest economic data weak and monetary policy on hold for the foreseeable future.
  • Moreover, plenty could go wrong as the UK general election campaign hots up.
  • Check out the DailyFX Economic Calendar and see what live coverage of key event risk impacting FX markets is scheduled for the week on the DailyFX Webinar Calendar.

Data on the UK economy released last Thursday were uniformly weak, with industrial production, manufacturing output, trade and construction figures all coming in lower than economists had predicted. In addition, the Bank of England said the same day that it may need to raise interest rates before late 2019 – positive for the British Pound in theory but actually negative because many market participants were expecting an increase before then.

The near-term outlook for GBP is therefore none too rosy, with politics also a concern. Ahead of the general election on June 8, Prime Minister Theresa May’s market-friendly ruling Conservatives have a large lead in the polls, with the latest from YouGov for The Times newspaper showing them ahead of the opposition Labour Party by a thumping 16 percentage points. However, that could easily be reduced as the election approaches, prompting market jitters.

Brexit also remains in the background, with the potential to blow up at any time if one side or the other makes an ill-timed comment.

As for the future, the week ahead is packed with important data releases, including the consumer and producer price indexes on Tuesday, unemployment and earnings on Wednesday, retail sales on Thursday and the Confederation of British Industry’s industrial trends survey on Friday.

This could all potentially weaken the Pound, which has had a good run of late, despite some weakness over the last few days, and could be due for a deeper correction.

Chart: GBP/USD Daily Timeframe (January 1, 2017 to May 12, 2017)

British Pound: Due For a Deeper Correction Lower

Chart by IG

--- Written by Martin Essex, Analyst and Editor

To contact Martin, email him at martin.essex@ig.com

Follow Martin on Twitter @MartinSEssex

What will drive the British Pound and all other currency majors in 2017’s second half? Check out the freeDailyFX Quarterly Forecasts

If you’re looking for ideas more short-term in nature, check out the IG Client Sentiment Data

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

DISCLOSURES