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
EUR/USD
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
Oil - US Crude
Bullish
Wall Street
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
Gold
Bearish
GBP/USD
Bullish
USD/JPY
Bearish
More View more
Real Time News
  • The Spinning Top candlestick pattern forms part of the vast Japanese candlestick repertoire with its own distinct features. Gain a better understanding of the spinning top candlestick here: https://t.co/yXomAftdv8 https://t.co/wOQAHZVnxB
  • Forex trading, which is the act of exchanging fiat currencies, is thought to be centuries old – dating back to the Babylonian period. Learn about the history of Forex here:https://t.co/ePTJlbUP7c https://t.co/WS2LkCt9gX
  • Two major events will dominate #Euro trading in the coming week: an #ECB meeting on Eurozone monetary policy, followed by an #EU summit to reach agreement on a recovery fund. Get your #currencies update from @MartinSEssex here: https://t.co/wnXjTDizMv https://t.co/tmxDfkgmSv
  • There are many different types of forex orders, which traders use to manage their trades. While these may vary between different brokers, there tends to be several basic FX order types all brokers accept. Learn about different FX order types here: https://t.co/lIJdiz4xSz https://t.co/UQRaKusFP7
  • The continuity seen across these volatility cycles is a good thing. Historical precedence offer a blueprint for identifying conditions supportive for a vol-event to occur, and how they may unfold. Deepen your knowledge of historical volatility here:https://t.co/vg7w10la3j https://t.co/nUvvI3WQpx
  • Australian Dollar is up fractionally this week with Aussie stalling just below the yearly range highs. Here are the levels that matter on the $AUDUSD technical chart. Get your #currencies update from @MBForex here: https://t.co/jYzBK1qH4s https://t.co/gYj4tFbsGS
  • What is the road ahead for equities this coming week? Check out my fundamental outlook below! #DowJones #SP500 #DAX30 #FTSE100 https://www.dailyfx.com/forex/fundamental/forecast/weekly/title/2020/07/11/Dow-Jones-SP-500-DAX-30-FTSE-100-Outlook-Stocks-Week-Ahead.html?CHID=9&QPID=917702&utm_source=Twitter&utm_medium=Dubrovsky&utm_campaign=twr https://t.co/HjIBDKqwvO
  • #Gold price gains seem to depend on monetary stimulus expansion and may turn lower as contraction of the Federal Reserve’s balance sheet underpins the US Dollar. Get your #metals update from @DanielGMoss here: https://t.co/8NHLc8jdhw https://t.co/0YYKXqtY9V
  • Japanese candlesticks are a popular charting technique used by many traders, and the shooting star candle is no exception. Learn about the shooting star candlestick and how to trade it here: https://t.co/OjTZOQEytM https://t.co/DDCWX1In7k
  • The US Dollar is pressured as rising coronavirus cases fail to dent 2021 GDP bets. Could the Singapore Dollar, Indonesian Rupiah, Philippine Peso and Malaysian Ringgit rise? Find out from @ddubrovskyFX here:https://t.co/u1qhaIGGoC https://t.co/kvFgxQjLb0
Chancellor Osborne Presents 2013 Budget; Sterling Rallies on BoE Remit

Chancellor Osborne Presents 2013 Budget; Sterling Rallies on BoE Remit

2013-03-20 14:15:00
Christopher Vecchio, CFA, Senior Strategist
Share:

THE TAKEAWAY: GBP UK 2012 Budget Announcement by Chancellor of the Exchequer George Osborne > GBPUSD BULLISH

The second of two major events out of the United Kingdom today provided another modestly bullish catalyst for the world’s oldest currency, the British Pound. Earlier today, the Bank of England expressed some concern over the Sterling’s free fall, according to the March meeting Minutes, and provoked a rally in GBP-based pairs given the stance that a weaker Sterling could drive up inflation, which would hurt the economy. Seemingly, a higher rate of inflation would not be tolerated by BoE policymakers, even as improving growth prospects remains a priority.

Thus, while the British Pound is rallying after Chancellor Osborne’s budget announcement in parliament today, the focus is much less on the fiscal picture. The fiscal side of the equation remains muddled, with the government cutting the 2013 GDP forecast to +0.6% from +1.2%, and the 2014 GDP forecast to +1.8% from +2.0%.

Instead, the impetus for the Sterling’s rally was the slight alteration in the Bank of England’s remittance, which would allow for “forward guidance,” a policy that the Federal Reserve uses to communicate policy more effectively. Absent from the change in remit was a shift in the BoE’s inflation target, which remains +2.0% y/y.

There was chatter ahead of the budget release that a higher rate of inflation would be allowed to provide wriggle room for more QE; however, with the inflation rate still targeted at +2% y/y, it means that British consumers’ purchasing power will be sought to be preserved as much as possible. For now, this is viewed as marginally positive for the GBP, although the big picture remains: the British economy continues to struggle and is on the third leg of the recession.

GBPUSD 1-minute Chart: March 20, 2013

Chancellor_Osborne_Presents_2013_Budget_Sterling_Rallies_on_BoE_Remit_body_Picture_1.png, Chancellor Osborne Presents 2013 Budget; Sterling Rallies on BoE Remit

Charts Created using Marketscope – Prepared by Christopher Vecchio

The GBPUSD was quite volatile during the course of the budget presentation, falling immediately off the bat, from 1.5120, quickly back towards the lows at 1.5040. However, by the time Chancellor Osborne’s speech was finished, the GBPUSD had rallied sharply and recovered to as high as 1.5165. It should be worth noting that the GBPUSD only rallied after the monetary argument was set forth – the fiscal update provided little relief and prompted the sell-off back towards the daily lows.

--- Written by Christopher Vecchio, Currency Analyst

To contact Christopher Vecchio, e-mail cvecchio@dailyfx.com

Follow him on Twitter at @CVecchioFX

To be added to Christopher’s e-mail distribution list, please fill out this form

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

DISCLOSURES

News & Analysis at your fingertips.