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
Wall Street
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
  • Traders utilize varying time frames to speculate in the forex market. The two most common are long- and short-term-time frames which transmits through to trend and trigger charts. Learn more about time-frame analysis here: https://t.co/9S5tXIs3SX https://t.co/FVisZuTP6M
  • Stocks appear to be in a corrective phase but could get put to the test; levels and lines to watch in the days ahead. Get your weekly equities forecast from @PaulRobinsonFX here: https://t.co/H1BaTlIHjY https://t.co/zP3mjfslSD
  • Currency exchange rates are impacted by several factors. Are different world leaders a contributing factor? Find out here: https://t.co/4jsORznRTE https://t.co/Of1thU4zXw
  • Further your forex knowledge and gain insights from our expert analysts on AUD with our free guide, available today: https://t.co/p2FhEwym1E https://t.co/MjiYB85TSF
  • Many people are attracted to forex trading due to the amount of leverage that brokers provide. Leverage allows traders to gain more exposure in financial markets than what they are required to pay for. Learn about FX leverage here: https://t.co/BdgFmkRxVw https://t.co/fIO9TP7D62
  • Trading Forex is not a shortcut to instant wealth, excessive leverage can magnify losses, and sentiment is a powerful indicator. Learn about these principles in depth here: https://t.co/lZFM8youtX https://t.co/Xja8DHUqlH
  • Risk management is one of the most important aspects of successful trading, but is often overlooked. What are some basic principles or risk management? Find out from @PaulRobinsonFX here: https://t.co/IsnpfJhp91 https://t.co/9po5Lg4vnR
  • The Japanese Yen is eyeing the upcoming Bank of Japan rate decision and CPI figures, but JPY crosses will likely remain dependent on broader market sentiment. Get your weekly $JPY forecast from @FxWestwater here: https://t.co/x9rbQpPfWe https://t.co/2x1R5XTVea
  • Consolidation or bull flag? A bull flag is a continuation pattern that occurs as a brief pause in the trend following a strong price move higher. Learn how to better spot these formations here: https://t.co/yOEvLjKnct https://t.co/uCaWQiu4Ly
  • Crude and Brent oil are on track to extend higher as Gulf Coast supply disruptions and a positive OPEC report bolster sentiment. Uranium is on a massive surge, aided by the famous Wall Street Bets group. Get your market update from @FxWestwater here:https://t.co/XrpV0jcy8e https://t.co/g2To3LmUah
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