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
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
  • On Friday, EUR/GBP surged to an over six-week high at 0.8940 then closed the weekly candlestick in the green with a 2.3% gain. Get your $EURGBP market update from @malkudsi here: https://t.co/ln09Ijn7rd https://t.co/oOiE19ZCuW
  • Heads Up:🇸🇬 GDP Growth Rate YoY Final due at 00:00 GMT (15min) Expected: -1.5% Previous: 1% https://www.dailyfx.com/economic-calendar#2020-05-26
  • Heads Up:🇸🇬 GDP Growth Rate QoQ Final due at 00:00 GMT (15min) Expected: -7.4% Previous: 0.6% https://www.dailyfx.com/economic-calendar#2020-05-26
  • 🇳🇿 Balance of Trade Actual: N$1267M Previous: N$722M https://www.dailyfx.com/economic-calendar#2020-05-25
  • 🇳🇿 Balance of Trade Actual: N$1,267M Previous: N$672M https://www.dailyfx.com/economic-calendar#2020-05-25
  • Heads Up:🇳🇿 Balance of Trade due at 22:45 GMT (15min) Previous: N$672M https://www.dailyfx.com/economic-calendar#2020-05-25
  • Crude oil prices wilted in Asia on Friday despite a strong start as news that China will impose more stringent control over Hong Kong saw a broad retreat for market risk appetite. Get your #oil market update from @DavidCottleFX here: https://t.co/89SH5T3315 https://t.co/awlGiVCVpc
  • Forex Update: As of 20:00, these are your best and worst performers based on the London trading schedule: 🇨🇦CAD: 0.17% 🇦🇺AUD: 0.14% 🇬🇧GBP: 0.13% 🇨🇭CHF: -0.03% 🇪🇺EUR: -0.06% 🇯🇵JPY: -0.08% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/WHghrcxnkR
  • Heads Up:🇰🇷 Consumer Confidence due at 21:00 GMT (15min) Previous: 70.8 https://www.dailyfx.com/economic-calendar#2020-05-25
GBP: Signs of Stability Begin to Emerge

GBP: Signs of Stability Begin to Emerge

2017-08-26 00:59:00
Martin Essex, MSTA, Analyst
GBP: Signs of Stability Begin to Emerge

Talking Points:

  • With London traders out Monday for a public holiday, the week will start with a whimper.
  • However, it will end with the most important data point of the week, the UK manufacturing PMI.
  • Meanwhile, technically, the British Pound is better placed than it has been for a while.

Fundamental Forecast for GBP: Neutral

It’s a public holiday in most of the UK Monday so the week will likely begin slowly for the British Pound. It is also a week largely devoid of top-tier data. However, there are two data points towards the end of the week that could move the British Pound.

First up Thursday is GfK’s measure of UK consumer confidence, followed Friday by the purchasing managers’ index for the UK’s manufacturing sector. Among economists, the consensus forecast is that both fell marginally in August, consumer confidence to -13 from -12 in July and the manufacturing PMI to 55.0 from 55.1.

As always, significant deviations from those numbers could move the currency either way but, from a technical perspective, it does seem to have stabilized after its recent sharp losses. Given the sharp fall in the US Dollar Friday after Federal Reserve Chair Janet Yellen steered clear of the subject of monetary policy in her Jackson Hole speech, a better way to look at the Pound’s progress last week is to look at EUR/GBP.

That continued to climb Monday-Wednesday but then fell a little until the post-Yellen drop in the Dollar lifted it again.

Chart: EUR/GBP Hourly Timeframe (August 18-25, 2017)

GBP: Signs of Stability Begin to Emerge

Chart by IG

That more stable trend for the Pound could well continue in the week ahead despite the start of the third round of Brexit negotiations. Few fireworks are likely and there could even be attempts to sound conciliatory, which might improve the current very bearish sentiment towards the currency and perhaps prompt some more profit-taking after its recent persistent weakness.

--- Written by Martin Essex, Analyst and Editor

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

Follow Martin on Twitter @MartinSEssex

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


News & Analysis at your fingertips.