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
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
Wall Street
Mixed
Gold
Mixed
GBP/USD
Bearish
USD/JPY
Bearish
More View more
Real Time News
  • The non-farm payroll (NFP) figure is a key economic indicator for the United States economy. It is also referred to as the monthly market mover. Find out why it has been given this nickname here: https://t.co/yOUVEEqhc5 https://t.co/bpKdIqGxsn
  • 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/jmcAIW4w5k
  • It’s important for traders to be familiar with FX spreads as they are the primary cost of trading currencies. Understand a pair's spread here: https://t.co/zEEUHZBx7g https://t.co/M9isuvnzqF
  • The British Pound is giving back some of its multi-month gains with some pairs testing notable support despite a positive fundamental backdrop. Get your market update from @nickcawley1 here: https://t.co/6Ct5R0H41F https://t.co/c4rXmMjMrv
  • Dealing with the fear of missing out – or FOMO – is a highly valuable skill for traders. Not only can FOMO have a negative emotional impact, it can cloud judgment and overshadow logic. Learn how you can control FOMO in your trading here: https://t.co/lgDf5cVYOn https://t.co/4dhCP5pnxM
  • Gold is facing the neckline of a Double Bottom Pattern after bouncing off a confirmed longer-term trendline. Is a bullish reversal in order? Get your market update from @FxWestwater here: https://t.co/kLXZewWBMd https://t.co/w1Nu0z569m
  • Central banks often deem it necessary to intervene in the foreign exchange market to protect the value of their national currency. Learn how central bank intervention can impact your trading here: https://t.co/8G8mUX4so6 https://t.co/Gn41XsGktg
  • Rollover is the interest paid or earned for holding a currency spot position overnight. Learn how to earn rollover interest on your open positions here: https://t.co/SRsG8CxjEn https://t.co/2AR1qgx0tz
  • The New Zealand Dollar is in a tricky spot. On one hand, rising stocks can propel NZD. On the other, a dovish RBNZ ahead could cool bond yields as the government tackles soaring housing costs. Get your market update from @ddubrovskyFX here: https://t.co/5rjm2gr3EL https://t.co/aLwhWHMPqz
  • 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/obH0RFLKhC
Forex News: UK Economy Enters Triple Dip Recession, Sterling Erases Gains

Forex News: UK Economy Enters Triple Dip Recession, Sterling Erases Gains

Benjamin Spier, Technical Strategist

THE TAKEAWAY: UK GDP fell 0.3% in Q4 -> UK economy enters a triple dip recession -> Sterling erases earlier gains

The UK economy has entered a triple dip recession for the first time in its history, and Pound investors are not happy. The UK gross domestic product contracted 0.3% in the fourth quarter of 2012, which was worse than the expected 0.1% contraction and a reversal from Q3’s 0.9% GDP growth. UK GDP was unchanged from Q3 of 2011, according to the UK Office for National Statistics.

UK production declined by 1.8% in the fourth quarter, while services output was flat and construction grew by 0.3%.

Weaker growth was predicted by the Bank of England, which said that the rise in Q3 GDP was due to the Olympics and the extra holiday in Q2. The UK entered a technical recession in the first two quarters of 2012, and the fourth quarter marks a triple dip recession since the global financial crisis. There is now worry that uncertainty surrounding the UK’s membership in the EU may deter business investments until the referendum which will take place between 2015-2017.

The Pound fell 50 points and erased some earlier session gains following the worse than expected GDP release. There were earlier rumors that the GDP for Q4 would be announced higher, which may have caused some buying ahead of the release. At the time of this writing, $GBPUSD is trading around 1.5775 in Forex markets. Support may be provided by a broken resistance line near 1.57500, and resistance may be provided by a broken support line around 1.5823.

GBPUSD Daily: January 25, 2013

UK_Economy_Enters_Triple_Dip_Recession_Sterling_Erases_Gains_body_gbpusd.png, Forex News: UK Economy Enters Triple Dip Recession, Sterling Erases Gains

Chart created by Benjamin Spier using Marketscope 2.0

-- Written by Benjamin Spier, DailyFX Research. Feedback can be sent to instructor@dailyfx.com .

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

DISCLOSURES