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
GBP/USD
Mixed
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
  • $EURUSD thwarted by support I think this'll break during Q4 - the next big support zone below runs from around 1448-1500 https://t.co/LnFGRIyfg3
  • 10-year US Treasury yields touching multi-week highs. EUR/USD is likely to re-test 1.1700 in the short-term. Get your $EURUSD market update from @nickcawley1 here:https://t.co/JBdGJ9iqhf https://t.co/hvLu72yDsD
  • This 👇 https://t.co/UH4A7C2HOO
  • $USDJPY has spanned its full, tight range. The has slightly broadened its smallest 30-day trading range (as a ratio of spot) on record. Serious breakout candidate should a firm risk or Fed rate speculation wind come through https://t.co/XyajC1dAee
  • Seems this once-Hawkish view from Cleveland Fed President Loretta Mester is becoming the consensus for the FOMC https://t.co/uHAmcRFNlG
  • - Supports November taper - Still some distance from maximum employment goal needed for raising rates
  • Fed's Mester - Economy has met substantial further progress bar for taper - On inflation bar for raising rates has largely been met - Expect conditions for first rate hike to be met by end of next year
  • Heads Up:🇬🇧 BoE Tenreyro Speech due at 13:00 GMT (15min) https://www.dailyfx.com/economic-calendar#2021-09-24
  • Do you know how to properly Identify a double top formation? Double tops can enhance technical analysis when trading both forex or stocks, making the pattern highly versatile in nature. Learn more about the double top formation here: https://t.co/t9FlspUVZz https://t.co/HFl8E8exht
  • Credit Suisse dumped Evergrande exposure on risk fears - FT
NZD/USD Weakness to Persist as RBNZ Warns of Subdued Inflation

NZD/USD Weakness to Persist as RBNZ Warns of Subdued Inflation

David Song, Strategist

FX Talking Points:

- GBP/USD Breaks Out of Narrow Range as BoE Warns of Faster Hiking-Cycle.

- NZD/USD Weakness to Persist as RBNZ Warns of Subdued Underlying Inflation.

DailyFX TableGBP/USD Table

GBP/USD breaks out of the narrow range from earlier this week as the Bank of England (BoE) raises its growth forecast for the U.K., with the pair at risk of staging a more meaningful advance over the days ahead as the central bank adopts a more hawkish outlook for monetary policy.

After voting unanimously to keep the benchmark interest rate at 0.50%, the Monetary Policy Committee (MPC) warns that ‘were the economy to evolve broadly in line with the February Inflation Report projections, monetary policy would need to be tightened somewhat earlier and by a somewhat greater extent over the forecast period than anticipated at the time of the November Report, in order to return inflation sustainably to the target.’

The comments suggest Governor Mark Carney and Co. will stay on course to further normalize monetary policy over the coming months as ‘inflation is projected to fall back gradually over the forecast but remain above the 2% target in the second and third years of the MPC’s central projection,’ and BoE officials may increase their efforts to prepare U.K. households and businesses for higher borrowing-costs as ‘a steady absorption of slack has reduced the degree to which it was appropriate for the MPC to accommodate an extended period of inflation above the target.

With that said, the reaction to the BoE rate decision brings the topside targets back on the radar for GBP/USD, and the pair may make another attempt to test the 2018-high (1.4346) as it continues to track the upward trend carried over from late last year.

GBP/USD Daily Chart

GBP/USD Daily Chart

Interested in trading? Review the ‘Traits of a Successful Trader’ series on how to effectively use leverage along with other best practices that any trader can follow.

  • Near-term outlook for GBP/USD has perked up following the string of failed attempts to close below the 1.3830 (61.8% retracement) to 1.3870 (78.6% expansion) region.
  • A close above 1.4100 (100% expansion) raising the risk for another run at the 1.4310 (61.8% expansion) to 1.4350 (78.6% retracement) hurdle, which largely lines up with the 2017-high (1.4346).
  • Keep in mind, the Relative Strength Index (RSI) preserves the bearish formation carried over from the previous month; need a break of trendline resistance to favor a further appreciation in GBP/USD.
NZD/USD Table

NZD/USD extends the decline from earlier this week as the Reserve Bank of New Zealand (RBNZ) reiterates ‘monetary policy will remain accommodative for a considerable period,’ and the pair stands at risk for further losses as it carves a fresh series of lower highs & lows.

The remarks from acting-Governor Grant Spencer suggests the central bank is in no rush to lift the cash rate off of the record-low as ‘core inflation measures continue to point to subdued underlying inflationary pressure,’ and incoming-Governor Adrian Orr may continue to tame expectations for an imminent rate-hike at the next meeting on March 22 as the ‘central expectation is that capacity pressure will increase, leading to an upwards move in the OCR towards the end of the projection period.’

With that said, the RBNZ’s wait-and-see approach for monetary policy may continue to sap the appeal of the New Zealand dollar, and NZD/USD may continue to give back the advance from the November-low (0.6780) as the Relative Strength Index (RSI) extends the bearish formation carried over from earlier this year.

NZD/USD Daily Chart

NZD/USD Daily Chart

Interested in having a broader discussion on current market themes? Sign up and join DailyFX Currency Analyst David Song LIVE for an opportunity to discuss potential trade setups!

  • Downside targets remain on the radar for NZD/USD as the pair snaps the upward trend from late-2017, with a break/close below the 0.7170 (50% retracement) to 0.7200 (38.2% retracement) region raising the risk for a move towards 0.7040 (50% retracement) to 0.7100 (38.2% expansion).
  • Next downside region of interest comes in around 0.6940 (61.8% expansion) to 0.6990 (50% expansion); keeping a close eye on the Relative Strength Index (RSI) as the bearish momentum appears to be gathering pace.
DailyFX Calendar

Want to know what other currency pairs the DailyFX team is watching? Download and review the Top Trading Opportunities for 2018.

--- 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.

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

DISCLOSURES