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
Bearish
Oil - US Crude
Mixed
Wall Street
Bullish
Gold
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
GBP/USD
Mixed
USD/JPY
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
More View more
Real Time News
  • The $USD, Euro, British Pound and Australian Dollar will all be at the mercy of political developments in Asia, Europe and North America this week. An avalanche of PMI data will set the backdrop. Find out from @ZabelinDimitri here: https://t.co/L8cfAgVx94 https://t.co/THWhPAS6AM
  • The price of #gold plunged 1% immediately after the stunning US jobs report crossed the wires. Get your market update from @RichDvorakFX here: https://t.co/8i0L6YIqjy https://t.co/y9dIXazJf9
  • S&P 500, Dow Jones, Nasdaq explode higher with stocks surging in response to shockingly better-than-expected monthly jobs data. Get your #equities market update from @RichDvorakFX here: https://t.co/nuMVWOzzuC https://t.co/M3nGBjd7kZ
  • The record-breaking NFPs increase behind us and the FOMC rate decision on Wednesday sets the tone for my trading video: 'Dow Soars Above 200-Day Average on NFPs, Will the #Fed Keep the Dollar Sliding' https://www.dailyfx.com/forex/video/daily_news_report/2020/06/06/Dow-Soars-Above-200-Day-Average-on-NFPs-Will-the-Fed-Keep-the-Dollar-Sliding.html?ref-author=Kicklighter&QPID=917719&CHID=9 https://t.co/kquvec5HVc
  • Seasonal factors, oversupply issues and the outbreak of COVID-19 has seen the price of liquefied #naturalgas (LNG) fall to 22-year lows (1.519), with the situation exacerbated by ‘fuller-than-normal’ storage facilities. Get your market update here:https://t.co/VOqfkBQ4aR https://t.co/OsaphmqEmu
  • Are recent gains in the Indian Rupee and Nifty 50 warranted? Risks are brewing in the background, leaving USD/INR in a consolidative setting as the Nifty pressures resistance. Get your $USDINR market update from @ddubrovskyFX here:https://t.co/svDaSdprvN https://t.co/kgddX1ZHe4
  • I approve of this dry humor. https://t.co/b42GmIZDlL
  • The US Dollar may be at risk to losses against some of its #ASEAN counterparts. USD/SGD, USD/PHP, USD/MYR and USD/IDR have recently broken to the downside. Will losses continue? Find out from @ddubrovskyFX here: https://t.co/0RTlj6maTT https://t.co/59cdbPc4l7
  • The #Nikkei 225 trades at 4-month highs after a 50% surge from the March low, while the RSI registers its first overbought readings since November 2019. Get your market update from @DanielGMoss here: https://t.co/pOEt698Ooi https://t.co/EHD2EHmQLW
  • The British Pound technical outlook still seems to favor the downside. GBP/CAD may pressure key rising support from August as GBP/AUD could prolong its downtrend. GBP/CHF may fall. Get your $GBP market update from @ddubrovskyFX here: https://t.co/hBOpDKXmfW https://t.co/8gGfGuw87o
GBP: Another Difficult Week Coming Up

GBP: Another Difficult Week Coming Up

2017-08-19 03:21:00
Martin Essex, MSTA, Analyst
Share:
GBP: Another Difficult Week Coming Up

Talking Points:

  • GBPUSD has been trending downwards since the start of August and that drift lower will likely continue.
  • The British Pound has also lost ground against both the Euro and the Japanese Yen, and here too it shows little sign of rallying.
  • On the economic front, revised second-quarter GDP figures are the ones to watch.

Check out our GBP Trading Guide: it’s free and has been updated for the third quarter of 2017

Fundamental Forecast for GBP: Bearish

With the British Pound trending lower against the US Dollar, Euro and Japanese Yen throughout the month of August so far, buying the currency is currently only for the brave. While corrections and consolidation are perfectly possible, further weakness will likely continue longer-term

.

Against the Dollar, for example, the Pound has retreated from a high of 1.3268 on August 3 to 1.2857 in late European business Friday. At that level it is below its 20-day, 50-day and 100-day moving averages, but is not yet oversold judging by the 14-day Relative Strength Index.

Chart: GBPUSD Daily Timeframe (May 1 – August 18, 2017)

GBP: Another Difficult Week Coming Up

Chart by IG

Technicals aside, there was a mixed bag of data last week. The headline rate of inflation was unchanged at 2.6% in July whereas a small uptick to 2.7% had been expected. Average earnings grew by more than predicted, taking some of the pressure of the hard-pressed consumer, and retail sales grew by more than expected on a month/month basis though they were lower than predicted year/year.

The overall impact on the currency was minimal, and there was also little response to the UK Government’s latest Brexit position papers on subjects like the border between Northern Ireland, which is part of the UK, and the Republic of Ireland, which will remain an EU member. While important, these papers are not seen as market-moving.

In the coming week, the key statistic will be the second reading of second-quarter GDP, which analysts will be watching for any deviation from the first estimates of 0.3% growth quarter/quarter and 1.7% year/year. Also on the calendar are the public finances on Monday and the Confederation of British Industry’s industrial and retail surveys on Tuesday and Thursday respectively.

Unlike Janet Yellen and Mario Draghi, Bank of England Governor Mark Carney will not be attending the Jackson Hole symposium and while his deputy Ben Broadbent will be there he will not be speaking. There is likely, therefore, to be little further guidance this week on the course of UK monetary policy in the months ahead.

--- Written by Martin Essex, Analyst and Editor

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

Follow Martin on Twitter @MartinSEssex

For help to trade profitably, check out the IG Client Sentiment data

And you can learn more by listening to our regular trading webinars; here’s a list of what’s coming up

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

DISCLOSURES

News & Analysis at your fingertips.