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.

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
EUR/USD
Bearish
Oil - US Crude
Mixed
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
Gold
Mixed
GBP/USD
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
USD/JPY
Bullish
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
  • Get your snapshot update of the of relative currency strength and exchange status from around the globe here: https://t.co/H19vRDCpUJ https://t.co/S74APOiQ3y
  • Two of the main Euro-pairs, $EURUSD and $EURGBP, are being driven by very different drivers. Get your market update from @nickcawley1 here: https://t.co/Vd32Y6HKEr https://t.co/Lgb5z5V1Xa
  • Recessions can devastate the economy and disrupt the fortunes of individuals, businesses, and investors. But economic decline in the business cycle is inevitable, and your trading can be defined by how you respond to crisis. learn how to prepare here: https://t.co/e4CnobJCss https://t.co/9uPXNvDBS5
  • We ended this past week with another cliffhanger. The $SPX teeters on the edge of a breakdown from the post-pandemic recovery. While we have NFPs and other key data ahead, the markets are likely to remain fixated on yields. My outlook for next week: https://www.dailyfx.com/forex/video/daily_news_report/2021/02/27/SP-500-Dollar-Reversal-Hinge-Not-On-NFPs-but-Markets-Risk-Imagination.html?ref-author=Kicklighter&QPID=917719&CHID=9 https://t.co/mlNDDyTgex
  • Make smart trading decisions with your free guide to trade the news. Download your free guide here.https://t.co/pb5E2KgRzW #DailyFXGuides https://t.co/70ZOJ0ZMwF
  • Looking for a new way to trade reversals? One of the most used reversal candle patterns is known as the Harami. Like most candlestick formation patterns, the Harami tells a story about sentiment in the market. Get better with trading reversals here: https://t.co/rfwUWJfbz9 https://t.co/SyroornFf5
  • MACD who? The Moving Average Convergence Divergence (MACD) is a technical indicator which simply measures the relationship of exponential moving averages (EMA). Find out how you can incorporate MACD into your trading strategy here: https://t.co/ZNs4QhQGQ6 https://t.co/KrMcyZZqO7
  • The Reserve Bank of Australia (RBA) rate decision may spark a bullish reaction in $AUDUSD as the central bank is expected to retain the current course for monetary policy. Get your market update from @DavidJSong here: https://t.co/WbcR9ER0qT https://t.co/TynsqCtPQ6
  • Gold has broken below a critical support confluence we’ve been tracking for months now and the risk remains for further losses while below this threshold in the weeks ahead. Get your $XAUUSD market update from @MBForex here:https://t.co/xgN2obaIWR https://t.co/H71ufPNkPg
  • Knowing how to accurately value a stock enables traders to identify and take advantage of opportunities in the stock market. Find out the difference between a stock's market and intrinsic value, and the importance of the two here: https://t.co/QszmdZFxlk https://t.co/Evr5KgUjVo
GBP/USD Rate Risks Larger Rebound on Hawkish BoE Comments

GBP/USD Rate Risks Larger Rebound on Hawkish BoE Comments

David Song, Strategist

BRITISH POUND TALKING POINTS

The British Pound pares the decline from earlier this week following a batch of positive data prints coming out of the U.K. economy, and GBP/USD stands at risk of extending the advance from the May-low (1.3204) as a growing number of Bank of England (BoE) officials show a greater willingness to implement another rate-hike in 2018.

Image of daily change for major currencies

GBP/USD RATE RISKS LARGER REBOUND ON HAWKISH BANK OF ENGLAND (BOE) COMMENTS

Image of daily change for GBPUSD

The above-forecast reading for the U.K. Purchasing Manager Index (PMI) instills an improved outlook for the region as service-based activity accounts for more than 70% of the economy, and the fresh developments may encourage the BoE to change its tune at the next meeting on June 21 as Monetary Policy Committee (MPC) board memberSilvana Tenreyrowarns that ‘a few rate rises will be needed’ over the policy horizon.

The comments suggest the BoE is on track to deliver a rate-hike in second-half of 2018 as price growth continues to run above the 2% target, and Governor Mark Carney and Co. may increase their efforts to prepare U.K. households and businesses for higher borrowing-costs as ‘an ongoing tightening of monetary policy over the forecast period would be appropriate to return inflation sustainably to its target at a conventional horizon.

Keep in mind, MPC members Ian McCafferty and Sir David Ramsden are also on the wires later this week, with a slew of hawkish comments raising the risk for a larger recovery in GBP/USD especially as the Relative Strength Index (RSI) continues to move away from oversold territory.

GBP/USD DAILY CHART

Image of GBPUSD daily chart
  • Near-term outlook for GBP/USD has perked up as the bearish momentum unravels, but recent price action raises the risk for range-bound conditions amid the failed attempts to close above the 1.3370 (78.6% expansion) hurdle.
  • Need a closing price above the stated region to spur a more meaningful run at Fibonacci overlap around 1.3440 (38.2% expansion) to 1.3460 (50% expansion), with the next region of interest coming in around 1.3560 (50% expansion) followed by the Fibonacci overlap around 1.3690 (61.8% expansion) to 1.3700 (38.2% expansion).

For more in-depth analysis, check out the Q2 Forecast for the British Pound

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!

Image of DailyFX economic calendar

ADDITIONAL TRADING RESOURCES

Are you looking to improve your trading approach? Review the ‘Traits of a Successful Trader’ series on how to effectively use leverage along with other best practices that any trader can follow.

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

Follow me on Twitter at @DavidJSong.

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

DISCLOSURES