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
More View more
Breaking news

Federal Reserve Leaves Interest Rates Unchanged, Maintains Monthly Asset Purchases

Real Time News
  • Crude oil prices are trading largely unchanged following last week's rebound as the Delta variant of Covid and Chinese regulatory measures temper the near-term demand outlook. Get your market update from @FxWestwater here:https://t.co/T3oQa98J3D https://t.co/3wDTX3N0q3
  • Robinhood said to price IPO at $38 per share - BBG
  • The British Pound could remain vulnerable against the US Dollar while perhaps looking to push higher against the Australian Dollar, Canadian Dollar and New Zealand Dollar.Get your market update from @ddubrovskyFX here:https://t.co/9iZa4oE4WQ https://t.co/4qC3c5Ki0v
  • 🇯🇵 Foreign Bond Investment (24/JUL) Actual: ¥1087.4B Previous: ¥-7827B https://www.dailyfx.com/economic-calendar#2021-07-28
  • 🇯🇵 Foreign Bond Investment (17/JUL) Actual: ¥-7827B Previous: ¥-1217.8B https://www.dailyfx.com/economic-calendar#2021-07-28
  • RT @IGSquawk: "China’s securities regulator convened a virtual meeting with executives of major investment banks on Wednesday night, attemp…
  • Heads Up:🇯🇵 Foreign Bond Investment (24/JUL) due at 23:50 GMT (15min) https://www.dailyfx.com/economic-calendar#2021-07-28
  • Heads Up:🇯🇵 Foreign Bond Investment (17/JUL) due at 23:50 GMT (15min) Previous: ¥-1217.8B https://www.dailyfx.com/economic-calendar#2021-07-28
  • The S&P 500 and Dow Jones could remain biased higher now that retail investors are back to aggressively shorting them. But, will recent shifts in sentiment materially change the broader outlook? Find out from @ddubrovskyFX here:https://t.co/RPirU4f4sp https://t.co/J0TQgOtRc4
  • 7 out of 11 S&P 500 sectors ended lower, with 55.6% of the index’s constituents closing in the red. Energy (+0.97%) and communication services (+0.75%) outperformed, whereas consumer staples (-0.87%) and utilities (-0.69%) lagged behind. https://t.co/akEBY85xtc
Sterling Price Weekly Forecast: Brexit Newsflow and Political Manoeuvres

Sterling Price Weekly Forecast: Brexit Newsflow and Political Manoeuvres

Nick Cawley, Strategist
GBPUSD 2-Hour Price Chart

Sterling (GBP) Price Fundamental Forecast:Neutral

Q3 2019 GBP Forecast and Top Trading Opportunities

No UK Data Next Week Will Leave Sterling Vulnerable to Rumor Risk

Sterling has nudged higher over the week, aided principally by slightly better-than-expected wages, jobs and retail sales data. UK inflation also edged higher and in a world without Brexit, these releases would have the Bank of England discussing whether the current monetary policy was appropriate or if it needed to be tightened. However, as has been the case for many, many months, Brexit is still the driver for Sterling and will remain so until October 31.

Next week there is no market moving hard UK data of note, leaving Sterling at risk of Brexit rumors and news flow. The UK market will also be holiday-thinned next week, leaving GBP potentially exposed to outsized moves in limited liquidity markets.

Brexit news flow continues unabated with the latest batch of headlines suggesting that a cross-party alliance of MPs may come together to form a national unity party if UK PM Boris Johnson loses the expected vote of no-confidence likely to be called in early September. The current Labour Party leader has said that he will act as interim PM is this succeeds ahead of an early general election with the Labour Party promising a second referendum. According to reports, four prominent remainer Conservative MPs are involved in talks with Corbyn.

Sterling technical are covered in a different section but the chart below shows a familiar pattern. Since late-April there have been three occasions when moves lower are met with a quick reversal before the overall bearish pattern takes over. Will the current move prove to be the fourth occasion?

GBPUSD Daily Chart (December 2018 - August 16, 2019)

GBPUSD Price Chart

The IG Client Sentiment Indicator shows retail traders are 75.6% net-long GBPUSD, a bearish contrarian bias. However daily and weekly changes suggest that GBPUSD prices may reverse higher.

Traders may 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.

What is your view on Gold – bullish or bearish?? You can let us know via the form at the end of this piece or you can contact the author at nicholas.cawley@ig.comor via Twitter @nickcawley1.

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

DISCLOSURES