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.

Free Trading Guides
EUR/USD
Bullish
GBP/USD
Mixed
USD/JPY
Mixed
Gold
Bullish
Oil - US Crude
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
Bitcoin
Mixed
More View more
Real Time News
  • The status of the US #dollar as the safe-haven asset of choice remains untouched and any weakness in the greenback is likely to be short-lived. Get your $USD market update from @nickcawley1 here: https://t.co/LO2u38jpUT https://t.co/ctgCJSOeTH
  • #FTSE 100 testing key support as the index lacks a directional bias. #DAX reverses off channel top. Get your indices technical analysis from @JMcQueenFX here: https://t.co/IHF2dgMfg9 https://t.co/2fMTFlOeTR
  • With knowledge of price action, traders can perform a wide range of technical analysis functions without the necessity of any indicators, including management of risk. Build on you knowledge of price action here: https://t.co/9hQA0bsYtt https://t.co/5KQowxuiBf
  • The term ‘Ichimoku,’ literally means ‘one glance,’ in Japanese. Ichimoku, or the one glance indicator, is considered to be a self-contained system in the fact that no additional indicators are necessary. Learn more about the 'one glance' indicator here: https://t.co/T7o7W9C0Ro https://t.co/7bhBfWvEkR
  • Support and resistance are the cornerstone of technical analysis, making it the foundation that you build your knowledge on. Build a stronger foundation here: https://t.co/yXLaRpl90I https://t.co/85JHunf2Xf
  • Many traders ask how a trading method that is 77 years old is applicable today. Learn about the Gartley pattern and see how you can incorporate it into your trading style here: https://t.co/2yPmGH0XvT https://t.co/rtqUKZSdn1
  • 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/ywv7RVP9qY
  • Crude oil prices may rise on supply-disruption fears after the outcome of the Iran election, but sentiment from #coronavirus fears may derail Brent’s recovery ahead of the G20 summit. Get your crude #oil market update from @ZabelinDimitri here: https://t.co/83iTphwaWv #OOTT https://t.co/RgQku64XyW
  • The Australian Dollar remains severely weighed down by #coronavirus worries and a lack of domestic data points will probably keep that story in the driving seat. Get you $AUDUSD market update from @DavidCottleFX here: https://t.co/qswUnnXVwR https://t.co/NyZ0iEpILm
  • While Sino-US trade jitters are temporarily abating, China-Swedish trade tensions are rising as a part of a political contagion of growing economic hostilities between nations across the world. Get your market update from @ZabelinDimitri here:https://t.co/F1fVoyzoz5 https://t.co/uOLKRebXB1
Sterling Vulnerable With Further Easing Looking Imminent After Soft Data

Sterling Vulnerable With Further Easing Looking Imminent After Soft Data

2011-09-07 09:15:00
Jonathan Granby,
Share:

UK industrial production in July showed continued weakness contracting by 0.2% from June widely missing expectations of a 0.2% expansion, the reading marks the 3rd contraction in industrial production on a monthly basis so far this year. The annual figures were equally bad coming in at -0.7% amid expectations of -0.4% the reading marked the 4th consecutive contraction, standing in stark contrast to industrial production figures this time last year which were hitting record highs. On the manufacturing front things were a tad brighter as monthly figures modestly beat expectations of a flat reading (0.0%) coming in at 0.1% while annualized numbers met expectations of 1.9%, despite the as expected annual showing it still marked the slowest expansion in 3 months and the 2nd worst showing in 17 months.

The slowdown is to be somewhat expected as elevated inflation continues to erode incomes and purchasing power, as domestic demand slumps companies are unwilling to invest in new technologies or building inventories. This drop in consumer demand comes amid ongoing uncertainty about the outlook for the UK economy as it struggles with the sharpest government spending cuts in decades resulting in the loss of hundreds of thousands of public sector jobs. And, in the bigger picture, the deterioration in the EMU, the UK’s largest trade partner, which is failing to deal with the spreading debt crisis and concerns about bank and sovereign solvency. The Chancellor of the Exchequer Osborne said yesterday that the UK economy is not immune from the debt crisis in the EMU. The Bank of England will certainly be considering all this as their policy meeting gets underway today and are set to announce rates and asset purchases tomorrow at 11:00GMT. (Join Technical Currency Strategist Joel Kruger to cover this event LIVE tomorrow)

Sterling_Vulnerable_With_Further_Easing_Looking_Imminent_After_Soft_Data_body_GBP.png, Sterling Vulnerable With Further Easing Looking Imminent After Soft Data

The reaction to the soft looking production data was quite choppy as markets were still digesting the recent developments further afield in the form of the German court ruling that German participation in the EFSF does not violate constitutional rules of how the government can use taxpayer money. The pound did take an initial dive but this move was quickly pared with players eager to buy into risk this morning.

Sterling_Vulnerable_With_Further_Easing_Looking_Imminent_After_Soft_Data_body_gbp2.png, Sterling Vulnerable With Further Easing Looking Imminent After Soft Data

Taking a step back to look at a daily chart we can see Gbp/Usd is rebounding intraday after several days of having been beaten down. Despite this intraday bounce we continue to favour moves to the downside in lieu of further monetary easing expected from the Bank of England in coming months as they try to help stabilize the economy going into Q3. With the greenback well positioned to make hefty gains – with the yen and franc effectively neutered as safe haven plays – and with the imminent prospect of further quantitative easing in the UK the downside in Gbp/Usd looks vulnerable with the favoured strategy of selling into rallies. For a full technical outlook.

Written by Jonathan Granby, DailyFX Research Team

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

DISCLOSURES

News & Analysis at your fingertips.