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.



Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
Oil - US Crude
Wall Street
More View more
Real Time News
  • The US economy will be in particular focus over the coming days, with the first Federal Reserve rate decision of the Biden presidency and the initial Q4’20 US GDP report on the docket. Get your market update from @CVecchioFX here:
  • Germany will not be able to stick to debts limits in constitution for years - Handelsblatt
  • The FTSE 100 has extended its pullback from trendline resistance (stemming from the 2009 low) with the index shedding 0.6% for the week. Get your #FTSE market update from @JMcQueenFX here:
  • Commodities Update: As of 19:00, these are your best and worst performers based on the London trading schedule: Gold: -0.01% Oil - US Crude: -0.02% Silver: -0.48% View the performance of all markets via
  • WTI Crude futures settle up 0.96%, at $52.77 - BBG
  • I'm not usually big with head and shoulders patterns but there are conflicting signals in $USD atm. 1st chart here is on h4 and it's a h&s with neckline ~ 90. 2nd chart is on h8, and its an inverse h&s with neckline ~ 91. Given calendar, a break this week can def happen.
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 100.00%, while traders in GBP/JPY are at opposite extremes with 66.31%. See the summary chart below and full details and charts on DailyFX:
  • Today was the 'quiet' session of the week with only a few high profile indicators on tap. The high profile fundamental themes start up in earnest tomorrow (including the IMF's WEO). We will see how speculative charge for the likes of GME competes with global growth forecasts
  • US Dollar Head and Shoulders Pattern, Focus on USD/CAD, NZD/USD
  • Indices Update: As of 19:00, these are your best and worst performers based on the London trading schedule: FTSE 100: 0.30% Germany 30: 0.29% France 40: 0.27% US 500: 0.17% Wall Street: -0.24% View the performance of all markets via
UK Inflation Adds to Legitimacy of BoE Monetary Guidance

UK Inflation Adds to Legitimacy of BoE Monetary Guidance

Benjamin Spier, Technical Strategist

THE TAKEAWAY: UK inflation declines to 2.8% in July, as expected -> BoE policy depends on inflation below 2.5% -> GBP/USD erases earlier losses

Want to trade with proprietary strategies developed by FXCM? Find out how here.

UK annual inflation fell back slightly from a yearly high, thereby signaling that the BoE’s expectation for inflation to fall below 2.5% over the next two years is a realistic one.

UK consumer prices were reported to have risen 2.8% over the 12-month period ending in July, which both met expectations and declined from the 2.9% annual inflation rate in June. Consumer prices were unchanged on a monthly basis, according to the UK Office for National Statistics.

Input costs for UK producers rose 5.0% on an annual basis, the biggest annual rise in over a year, according to a different report. Meanwhile, the retail price index was unchanged on a monthly basis in July.

Inflation now has a more defined role in Bank of England monetary policy, according to the inflation report released last week. The report said that interest rates will only rise after unemployment falls back to 7%. However, the reliance on unemployment would be ‘knocked out’ if inflation fails to fall within 0.5% of the BoE’s 2% target inflation year within the next two years. Although the BoE expects inflation to fall back towards 2% within 2 years, a rise in Pound following the report release attested to traders’ skepticism.

Therefore, a bigger than expected decline in inflation would have been Pound negative. The Pound erased earlier losses against the US Dollar following the as-expected release. Resistance may now come in at 1.5518, by a rising trend line from early July, and support may be seen by a broken resistance line around 1.542.

New to Forex? Watch this video

GBPUSD Daily: August 13, 2013

UK_Inflation_Adds_Legitimacy_to_BoE_Monetary_Guidance_body_gbpusd.png, UK Inflation Adds to Legitimacy of BoE Monetary Guidance

Chart created by Benjamin Spier using Marketscope 2.0

-- Written by Benjamin Spier, DailyFX Research. Feedback can be sent to .

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