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
  • The ISM manufacturing index plays an important role in forex trading, with ISM data influencing currency prices globally. Learn about the importance of the ISM manufacturing index here: https://t.co/Xr3xtoFpZy https://t.co/j5xDAG6LLb
  • While the meetings of central bankers in the US, Japan and the UK will be front, left and center of traders’ minds this coming week, it would be wise not to ignore next Sunday’s German Federal Election. Get your euro forecast from @MartinSEssex here: https://t.co/m920Uvmngm https://t.co/yQYtfHf66s
  • Take a closer look visually at the most influential global importers and exporters here: https://t.co/G58J1dg6y3 https://t.co/Dqq9S9vGvo
  • Trading bias allows traders to make informative decisions when dealing in the market. This relates to both novice and experienced traders alike. Start learning how you may be able to make more informed decisions here: https://t.co/rz7fqhRoMG https://t.co/lccPTTlvj0
  • GBP/USD’s consolidation could end soon if price breaks out of a symmetrical triangle in play since July. At this time, a downside breakout is likely following the appearance of a death cross. Get your weekly $GBP forecast from @DColmanFX here: https://t.co/WIKdSesfkJ https://t.co/Fx0qr32xgI
  • Greed is a natural human emotion that affects individuals to varying degrees. Unfortunately, when viewed in the context of trading, greed has proven to be a hindrance more often than it has assisted traders. Learn how to control greed in trading here: https://t.co/kODPAfJE79 https://t.co/IRS9MaA7h8
  • The Federal Reserve rate decision is likely to sway the near-term outlook for the price of gold as the central bank appears to be on track to scale back monetary support. Get your weekly gold forecast from @DavidJSong here: https://www.dailyfx.com/forex/fundamental/forecast/weekly/CHF/2021/09/18/Gold-Price-Outlook-Hinges-on-Fed-Rate-Decision-Forward-Guidance.html https://t.co/dWWxtErjK0
  • Forex liquidity makes it easy for traders to sell and buy currencies without delay, and also creates tight spreads for favorable quotes. Low costs and large scope to various markets make it the most frequently traded market in the world. Learn more here: https://t.co/arxYmtQeUn https://t.co/4qxwiJsV1K
  • Forex quotes reflect the price of different currencies at any point in time. Since a trader’s profit or loss is determined by movements in price, it is essential to develop a sound understanding of how to read currency pairs. Learn how to read quotes here: https://t.co/CNtqrKWDBY https://t.co/stMPuq0VXR
  • A currency carry trade involves borrowing a low-yielding currency in order to buy a higher yielding currency in an attempt to profit from the interest rate differential. Find out if the carry trade suits your trading style here: https://t.co/7t4BzmLg8w https://t.co/v6RGICQvge
GBP/USD Rallies Despite Wait-and-See BoE; Short-Squeeze in Play?

GBP/USD Rallies Despite Wait-and-See BoE; Short-Squeeze in Play?

David Song, Strategist

Talking Points:

- GBP/USD Pushes to Fresh March High Even as BoE Sits Pat; Short-Squeeze on Tap?

- USDOLLAR Extends Decline Following Dovish FOMC- Dudley, Rosengren in Focus.

Avoid the pitfalls of trading by steering clear of classic mistakes. Review these principles in the "Traits of Successful Traders" series.

GBP/USD

GBP/USD Daily Chart

Chart - Created Using FXCM Marketscope 2.0

  • GBP/USD climbs to a fresh monthly high even as the Bank of England (BoE) votes unanimously to retain its current policy in March; seems as though the U.K. referendum remains the biggest hurdle for the Monetary Policy Committee (MPC) as central bank officials remain upbeat on the economy and argue that the next move will be to normalize monetary policy.
  • Even though the BoE sticks to a wait-and-see approach, the British Pound stands at risk for a short-squeeze amid the growing divergence between price and the Relative Strength Index (RSI), which may fuel speculation of an inverse head-and-shoulders pattern.
  • Nevertheless, the long-term outlook remains tilted to the downside as the BoE lags behind its U.S. counterpart, with the next topside hurdle coming in around 1.4668 (February high) followed by 1.4815 (2016 high).
GBP/USD SSI
  • The DailyFX Speculative Sentiment Index (SSI) shows the retail FX crowd remains net-long GBP/USD since November 19, with the ratio hitting an extreme in January as it climbed above +3.00.
  • Nevertheless, retail sentiment continues to come off of the extreme reading as it narrows to +1.03 as 51% of traders are now long, while open interest stands 4.2% below the monthly average.

Why and how do we use the SSI in trading? View our video and download the free indicator here

Join DailyFX on Demand for Real-Time SSI Updates Across the Majors!

USDOLLAR(Ticker: USDollar):

Index

Last

High

Low

Daily Change (%)

Daily Range (% of ATR)

DJ-FXCM Dollar Index

11863.94

11974.66

11860.5

-0.84

178.94%

GBP/USD Rallies Despite Wait-and-See BoE; Short-Squeeze in Play?USDOLLAR Daily Chart

Chart - Created Using FXCM Marketscope 2.0

  • The USDOLLAR remains under pressure as the Federal Open Market Committee (FOMC) scales back their economic outlook and curbs interest-rate expectations; may see the greenback face additional headwinds over the near-term as Fed Chair Janet Yellen adopts a more dovish outlook for monetary policy.
  • Even though the U. of Michigan Confidence survey is expected to increase to 92.2 from 91.7 in February, fresh comments from New York Fed President William Dudley and Boston Fed President Eric Rosengren, both 2016 FOMC voting-members, may further dampen the appeal of the greenback should the central bank officials talk down bets for higher borrowing-costs.
  • As the USDOLLAR struggles to find support, a close below 11,900 (78.6% retracement) raises the risk for a move back towards 11,789 (August low).
GBP/USD Rallies Despite Wait-and-See BoE; Short-Squeeze in Play?

Read More:

US Dollar – Breakdown Continues, Reprieve Ahead?

AUD/USD Post-FOMC Rally at Risk Ahead of Australian Labor Report

Long-term Low in Silver?

Long Term Cyclical Influence Nears for AUD/USD

Get our top trading opportunities of 2016 HERE

--- Written by David Song, Currency Analyst

To contact David, e-mail dsong@dailyfx.com. Follow me on Twitter at @DavidJSong.

To be added to David's e-mail distribution list, please follow this link.

Trade Alongsidethe DailyFX Team on DailyFX on Demand

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

DISCLOSURES