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.



Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
More View more
Real Time News
  • $ARKK down to a fresh three month low but finding some support on this confluent fibo level. If the rates theme continues could add more pressure here
  • tech side of the $USD forecast already starting to fill in with today's bullish breakout 😎
  • I just finished my USD 4Q fundamental forecast with @JStanleyFX (who did the techs) at the end of last week. Today certainly jazzes up my assessment
  • The S&P 500 has opened with a sharp gap lower while the Dollar pushes an 11 month high. DailyFX's @JohnKicklighter talks about volatility, debt limits, and Fed forecasts!
  • $SPX trying to hold support after failing at resistance yday $SPY $ES currently about 4% off of the all time high
  • Nasdaq tumbles 2% $NDX
  • The ICE's trade-weighted $DXY Dollar Index is at an 11 month high today. Notably, its largest component - $EURUSD - has not slipped the August low
  • Stocks extend fall, Dow Jones down 1% following worse-than-expected US Consumer Confidence #trading $DJIA
  • Big enough disappointment to heap onto the risk aversion but not bad enough to restart speculation of a delayed November taper from the FOMC. Net net, further bearish pressure on $SPX
  • The $SPX has opened today with its biggest bearish gap since last Monday's tumble. Officially squashes the recovery momentum and now we are more balanced in facing fundamental event risk - bullish or bearish
British Pound Forecast: GBP Caution as BoE Meeting Looms

British Pound Forecast: GBP Caution as BoE Meeting Looms

Justin McQueen, Strategist


  • GBP Recovers Across the Board
  • BoE and NFP the Notable Data Points

The Pound extended on its recovery throughout the week across the board, with major GBP pairs testing key psychological levels. While the weakness in the greenback post-FOMC played a large part in the bounce for GBP/USD, bond spreads have also moved in favour for Cable. As was widely expected, the Fed meeting did little to rock the boat and largely stuck to the script, albeit with some subtle changes. That said,my view remains that some taper excitement can be expected at the next month’s Jackson Hole Symposium, a rather fitting time as it would mark the anniversary of the announcement of average inflation targeting.

GBP/USD Stops Short at Familiar Resistance

British Pound Forecast: GBP Caution as BoE Meeting Looms

Source: Refinitiv

Looking ahead to next week, two stand out data points will grab market participants focus, with the BoE decision on Thursday and NFP on Friday. For the Bank of England, policy changes are not expected, however, with a split between the doves and hawks beginning to emerge on the committee, this will increase the focus on the accompanying statement and economic projections. Given Delta variant risks are subsiding thanks to a successful vaccination program, the BoE may start to show more signs of optimism and thus underpin the currency. Elsewhere, with Fed tapering of QE a near certainty, the focus is instead on the timing of when the announcement will come and in turn this is where the NFP data will be key.

DailyFX Calendar

British Pound Forecast: GBP Caution as BoE Meeting Looms

Source: DailyFX

GBP/USD: The pair has stopped short at familiar resistance once again, however, with GBP back above 1.3900, dips look likely to find support ahead of the BoE decision. However, a close above 1.4000 will be needed to reinforce bulls.

EUR/GBP: The psychological 0.8500 handle handle remains formidable, although, downside pressure is likely to persist with a break opening the doors to 0.8470-80. Fading rallies from 0.8600 is the preferred view.

EUR/GBP Chart: Daily Time Frame

British Pound Forecast: GBP Caution as BoE Meeting Looms

Source: Refinitiv

The Need to Know Complete Guide on Trading the Pound (GBP)

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