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
Mixed
GBP/USD
Bullish
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
Gold
Mixed
Oil - US Crude
Mixed
Bitcoin
Bearish
More View more
Real Time News
  • What is market volatility and what does a market event volatility look like? Find out from @PaulRobinsonFX here: https://t.co/vg7w10la3j https://t.co/HF3B9pG1FP
  • RT @XHNews: China's foreign exchange reserves came in at 3.0956 trillion U.S.D at the end of November, increased by 22.9 billion dollars fr…
  • Activity behind the Aussie Dollar is extreme - even compared to market-wide extremes (quiet). I talk about it in my $AUDUSD and AUD tech analysis for this week https://www.dailyfx.com/forex/technical/article/fx_technical_weekly/2019/12/07/Australian-Dollar-Forecast-Has-a-Systemic-Break-But-How-Far-Out-Is-It.html https://t.co/ZNKW1YqXkS
  • RT @BIS_org: Average daily turnover of OTC interest rate derivatives more than doubled over 2016-19 to $6.5 trillion, taking OTC markets’ s…
  • RT @BIS_org: Trading in emerging market currencies grew faster than major currencies 2016-19 to almost $1.6 trillion a day & 23% of global…
  • RT @BIS_org: The dollar #RepoMarket experienced stress in September - Following structural changes in the financial system, the reluctance…
  • RT @BIS_org: #AssetValuations in equity markets hinge on the (exceptionally low and negative) term premium; various indicators point to hig…
  • RT @BIS_org: The BIS Quarterly Review is out https://t.co/MyqyhpnTVR https://t.co/BRZeZoRBTN
  • oll - Does your personality match your #tradingstyle? Vote and find out from @WVenketas here: https://t.co/vREsUIWSJd https://t.co/PZSZ7OAtSN
  • Central bank independence has several advantages and disadvantages. Find out what they are in-depth with @MartinSEssex here: https://t.co/wVFXbbTxf1 https://t.co/qAYQhmOVUf
GBP: Sterling Continues to Benefit From a Lack of Bad News

GBP: Sterling Continues to Benefit From a Lack of Bad News

2018-09-15 10:00:00
Nick Cawley, Analyst
Share:
Please add a description for the image.

Fundamental Forecast for GBP: Bullish

Sterling (GBP) Talking Points:

  • Brexit continues to dominate although hard UK data surprises to the upside.
  • Bank of England remains cautious as talks progress.

The DailyFX Q3 GBP Forecast is available to download.

We remain bullish on Sterling going into next week after the latest jobs, wages and GDP data all came in better-than-expected this week, while a lack of any negative Brexit news leaves the British Pound looking under-valued. The main data point next week is the latest Consumer Price Inflation release on Wednesday at 08:30 GMT with the latest market expectations a nudge lower in annual CPI to 2.4%. This remains above the central bank’s target of around 2% and the latest uptick in wages will be closely watched by the BOE for any additional inflationary feed through into prices. The central bank left all policy measures unchanged at this week’s MPC meeting.

Brexit negotiations remain ongoing with the atmosphere around the talks more amenable with both sides mentioning concessions on previous red-lines, sending a slightly more positive signal to the financial markets. With talks ongoing and nearing deadlines, much work is still needed, especially over the Irish Border, and headlines will continue to drive Sterling.

The comprehensive DailyFX Economic Calendar for the week ahead provides traders with updated data and forecasts across all major currencies. On Monday we will be taking an in-depth look at the important UK data releases, Brexit and other UK asset market drivers at 10:30GMT in our weekly UK Key Events and Markets Webinar.

EURGBP continues to move slowly lower and should be used as a Brexit barometer over GBPUSD and other crosses. Any positive news sees the pair move lower within a 2018 range of 0.8600 to 0.9100.

EURGBP Weekly Price Chart (March 2017 – September 14, 2018)

GBP: Sterling Continues to Benefit From a Lack of Bad News

DailyFX analyst Paul Robinson’s latest video on how to become a better, more consistent trader is a must listen for market participants seeking an edge. As Paul notes early in his piece, Markets are too dynamic, full of too much uncertainty, to try and navigate them without a framework in place. Trading plans are imperative for creating consistent results'.Becoming a Better Trader – How to Create a Trading Plan.

Traders may also be interested in two of our trading guides – Traits of Successful Traders and Top Trading Lessons – while technical analysts are likely to be interested in our latest Elliott Wave Guide.

--- Written by Nick Cawley, Analyst

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

Follow Nick on Twitter @nickcawley1

Other Fundamental Forecast:

New Zealand Dollar Forecast - NZD Rise to Gain if GDP Sinks RBNZ Rate Cut Bets, Trade War a Risk

Oil Forecast – Brent Up 10% Since August Low, Stubborn Supply Concerns Persist

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

DISCLOSURES

News & Analysis at your fingertips.