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.

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
Mixed
Wall Street
Bearish
Gold
Mixed
GBP/USD
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
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
  • AUD/USD IG Client Sentiment: Our data shows traders are now net-long AUD/USD for the first time since Feb 02, 2021 when AUD/USD traded near 0.76. A contrarian view of crowd sentiment points to AUD/USD weakness. https://www.dailyfx.com/sentiment https://t.co/izRyhYLOFW
  • Central banks often deem it necessary to intervene in the foreign exchange market to protect the value of their national currency. Learn how central bank intervention can impact your trading here: https://t.co/8G8mUX4so6 https://t.co/Z7TayeGRXB
  • 🇿🇦 Balance of Trade (JAN) Actual: ZAR11.83B Expected: ZAR15.2B Previous: ZAR32B https://www.dailyfx.com/economic-calendar#2021-02-26
  • 🇮🇳 GDP Growth Rate YoY (Q4) Actual: 0.4% Expected: 0.5% Previous: -7.5% https://www.dailyfx.com/economic-calendar#2021-02-26
  • 🇲🇽 Balance of Trade (JAN) Actual: $-1.236B Previous: $6.262B https://www.dailyfx.com/economic-calendar#2021-02-26
  • 🇧🇷 Unemployment Rate (DEC) Actual: 13.9% Expected: 13.9% Previous: 14.1% https://www.dailyfx.com/economic-calendar#2021-02-26
  • S&P 500 back down to support area (3805-10) https://t.co/VgJHDImfZY
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 91.38%, while traders in GBP/JPY are at opposite extremes with 70.18%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/XtCpP1uEI6
  • Heads Up:🇿🇦 Balance of Trade (JAN) due at 12:00 GMT (15min) Expected: ZAR15.2B Previous: ZAR 32B https://www.dailyfx.com/economic-calendar#2021-02-26
  • Heads Up:🇲🇽 Balance of Trade (JAN) due at 12:00 GMT (15min) Previous: $6.262B https://www.dailyfx.com/economic-calendar#2021-02-26
GBP: Upcoming Inflation Data May Dent Bullish Uptrend

GBP: Upcoming Inflation Data May Dent Bullish Uptrend

Nick Cawley, Strategist
GBP: Upcoming Inflation Data May Dent Bullish Uptrend

Sterling/GBP Talking Points:

  • UK inflation data may derail the current Sterling rally in the short-term.
  • GBP rally continues against the weak US dollar but the EUR remains the strongest currency.

Fundamental Forecast for GBP: Bullish

We remain buyers of GBP going into the third week of January but caution that the current move may hit resistance if UK inflation remains above target. Headline UK inflation in November hit 3.1% - while core printed at 2.7% - above the Bank of England’s remit of around or close to 2%. December’s numbers are expected to tick down to 3.0% and 2.6% respectively, not enough for BoE governor Mark Carney to break open the champagne, but perhaps recognition that finally the recent strength of GBP has worked its way through the system and imported inflation has peaked. An unchanged figure would make any monetary tightening or guidance harder to justify, especially with UK growth still below par.

UK Economic Data Releases on Tuesday, January 16, 2018.

GBP: Upcoming Inflation Data May Dent Bullish Uptrend

I will be taking a more in-depth look at the upcoming UK data releases at 11:30 GMT on Monday, January 15, 2018.

The British Pound remains strong against an admittedly weak US dollar and has pushed back up above 1.3600 and back towards levels last seen on Brexit day in 2016. Sterling has taken the recent, messy, UK cabinet re-shuffle in its stride while Brexit talk is, for the moment, no longer such a political risk as it was seen to be last year.

The pair have been aided by fears that the US dollar may not get the Trump tax plan uplift that investors first thought and that with US inflation still below target, the expected three US interest rate hikes in 2018 may be pushed back along the calendar.

GBP/USD Price Chart Daily Timeframe (March 30, 2017 – January 12, 2018)

GBP: Upcoming Inflation Data May Dent Bullish Uptrend

--- Written by Nick Cawley, Analyst

To contact Nick, email him at nicholas.cawley@ig.com

Follow Nick on Twitter @nickcawley1

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

DISCLOSURES