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
Bullish
Oil - US Crude
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
Wall Street
Mixed
Gold
Mixed
GBP/USD
Mixed
USD/JPY
Bullish
More View more
Real Time News
  • 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/ZNs4Qi8ieG https://t.co/INJz4NSugQ
  • 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/QszmdZX8cS https://t.co/qdrsi61CN8
  • It seems the markets are riding high, but risk is always lurking around the corner. Consider your escape plan before you find yourself in collapsing market. What are the top havens for different conditions in 2021? Find out from @JohnKicklighter here: https://t.co/1oeXWEsJkb https://t.co/IyQdfq29fz
  • Myth or fact? One thing is for sure, there are a lot of misconceptions about trading. Knowing the difference between common trading myths and the reality is essential to long-term success. Find out about these 'myths' here: https://t.co/EDvQdHfIPm https://t.co/R7pa7DsM8n
  • What are some monetary policies that could affect Gold this quarter? Get your Gold free forecast here: https://t.co/bTXkGN1CIM #DailyFXGuides https://t.co/EhdZpmkzaH
  • Even more remarkable than the record high levels of leverage registered in US equities this past week was the attention it garnered. Paying attention to risk is a threat when markets are this high and the docket as dense as it is this week. My outlook: https://www.dailyfx.com/forex/video/daily_news_report/2021/01/23/Dow-VIX-Tesla-and-Leverage-Reflect-Greater-Risk-to-the-Relentless-Bull-Market.html?ref-author=Kicklighter&QPID=917719&CHID=9 https://t.co/KBOJIRPTQe
  • Consolidation or bull flag? A bull flag is a continuation pattern that occurs as a brief pause in the trend following a strong price move higher. Learn how to better spot these formations here: https://t.co/yOEvLjKnct https://t.co/qP2PbS4dsY
  • Are you new to trading? Technical analysis of charts aims to identify patterns and market trends by utilising different forms of technical chart types and other chart functions. Get a refresher on technical analysis or begin building your knowledge here: https://t.co/qV3c7a4YR3 https://t.co/POGWDIkqqz
  • USD hegemony is at risk thanks to changes in the global economy and the long-term consequences of the US-China trade war. Get your market update from @CVecchioFX here: https://t.co/5GO9UrvO4y https://t.co/H76jNJJxU5
  • Did you know a Doji candlestick signals market indecision and the potential for a change in direction. What are the top five types of Doji candlesticks? Find out https://t.co/c51s3IBcEu https://t.co/1TiEWCbJ6t
BoE Vote to Not Add to Stimulus was Unanimous

BoE Vote to Not Add to Stimulus was Unanimous

Benjamin Spier, Technical Strategist

THE TAKEAWAY: BoE votes for unchanged asset purchases and interest rate were unanimous -> Inflation forecast revised higher by MPC -> Sterling is trading lower

The votes in the September Bank of England meeting to keep the asset purchase target at 375 billion Pounds and the interest rate unchanged at 0.5% were unanimous, according to the minutes released from the meeting. The minutes said that the Monetary Policy Committee considered the rise in inflation and upcoming GDP volatility before voting, and will continue to consider both measures for future stimulus decisions. One MPC member said he saw a good case for adding to the asset purchase target, but did not vote for it.

The minutes predict a sharp rise in the third quarter GDP as the effect of the Diamond Jubilee unwinds and the economy receives a small boost from the Olympics. Furthermore, the bank now predicts that inflation will not fall as quickly as forecasted in August, following an uptick in the annual inflation rate. The rise in inflation was attributed to higher oil prices and an increase in utility and food prices; the BoE’s target inflation rate is 2%.

The minutes said it is still too early to see the effects of the Funding for Lending Scheme on borrowing by households and the corporate sector; however, the lower borrowing rates are encouraging.

The members of the MPC noted the continued slowdown of the global economy, especially in the Euro-zone and even Germany. The minutes attributed the low trading volume among financial assets in August to building anticipation for central bank decisions in September, like the one undertaken by the ECB. The BoE expects the Euro debt crisis to weigh on UK economic activity for some time.

Despite the unanimous vote to not add to monetary stimulus, as adding to stimulus would usually be Pound negative, Sterling still dropped following the release. $GBPUSD dropped well below 1.6250 in the minutes following the release, thereby reversing an overnight rally. The key 1.6200 figure could provide support.

GBPUSD 5-minute: September 19, 2012

BoE_Vote_to_Not_Add_to_Stimulus_was_Unanimous_body_gbpusd.png, BoE Vote to Not Add to Stimulus was Unanimous

“Meet the DailyFX team in Las Vegas at the annual FXCM Traders Expo, November 2-4, 2012 at the Rio All Suite Hotel & Casino. For additional information regarding the schedule, workshops and accommodations, visit the FXCM Trading Expo website.”

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

DISCLOSURES