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. See our updated Privacy Policy here.

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
More View more
Real Time News
  • The oil price breakout has extended into the first level of lateral resistance- risk for some ‘back and fill’ here but the outlook remains constructive. Get your #crudeoil market update from @MBForex here:https://t.co/jdNzvlgecz https://t.co/BEbFRujI3y
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 91.25%, while traders in Wall Street are at opposite extremes with 76.07%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/VMAlOp5nwM
  • Heads Up:🇺🇸 Fed Quarles Speech due at 17:00 GMT (15min) https://www.dailyfx.com/economic-calendar#2021-10-20
  • The New Zealand Dollar's reaction to its recent rate hike was tepid at best. However, it's tempo over the past week in particular has been an impressive one. $NZDUSD specifically running strongest 6-day rally since June 2020 https://t.co/qM8cvjLCkU
  • Dow hits new record high...boom! $DJI
  • Commodities Update: As of 16:00, these are your best and worst performers based on the London trading schedule: Silver: 2.81% Gold: 0.89% Oil - US Crude: 0.58% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/FiM78jjd0z
  • Forex Update: As of 16:00, these are your best and worst performers based on the London trading schedule: 🇳🇿NZD: 0.71% 🇦🇺AUD: 0.53% 🇨🇭CHF: 0.35% 🇬🇧GBP: 0.19% 🇪🇺EUR: 0.11% 🇯🇵JPY: 0.11% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/o4Bg5hW0tn
  • #Oil Technical Forecast: Oil Eight-Week Rally Vulnerable- $WTI Levels ($USOil) - https://t.co/32p8cbyZVr https://t.co/PPWB11MbRh
  • Indices Update: As of 16:00, these are your best and worst performers based on the London trading schedule: Wall Street: 0.45% US 500: 0.40% France 40: 0.01% Germany 30: 0.00% FTSE 100: -0.10% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/brXwszjzBv
  • RT @jason_donner: Pelosi on if a framework can be reached by end of week: “Let’s see…we have met every milestone along the way in our timet…
GBP/USD Sinks Below 1.7075 As BOE Voted 9-0 To Leave Rate Unchanged

GBP/USD Sinks Below 1.7075 As BOE Voted 9-0 To Leave Rate Unchanged

Edward Hyon,

Talking Point:

  • BOE Minutes Reveal an Interest Rate Vote of 9-0 By the MPC Members.
  • UK BBA Loans for House Purchase (Jun): Actual Vs 41375 Estimated; 41757 Prior,
  • GBP/USD Sinks after The BOE Minutes To Trade Below 1.7075; Erased Earlier Gains.

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

The eagerly awaited Bank of England (BOE) Minutes for the month of July may have disappointed those traders expecting a more hawkish tone from the BOE. The interest-rate vote (9-0) showed no MPC members were for an interest rate hike. Moreover, the BOE states that they have no preset timing for first rate increases. However, the minutes did reveal that some MPC members saw “receding risks” from rate rises “derailing” the economic recovery.

The minutes were highly anticipated due to the BOE Governor Mark Carney sending out mixed signals in recent weeks. He has gone from saying “the markets were underpricing the possibility of an interest rate hike this year” at the Mansion House on June 12 to saying “there is more spare capacity to be absorbed than previously thought before any rate hike is considered,” days later.

The Central Bank Chief has also indicated that the exact timing of the first rate hike, since March 2009, would be “data driven and dependent on the progress of the economy.” It seems on the backdrop of a sole UK CPI print above prior readings, the case for a near-term tightening by BOE seems flimsy says DailyFX Currency Strategist Ilya Spivak. The UK Loans for House Purchase data for the month of June crossed the wires at 43,265 versus 41,881 from the prior month. This print exceeded market expectations.

Ahead of the BOE Minutes, the Pound grinded higher against the greenback to trade near 1.7100 level. After the release, GBP/USD sank to trim its earlier gains to break below 1.7075.

From a technical dimension, Ilya Spivak mentions near-term support rests at 1.7048 (14.6% Fib. Ret.) and resistance at 1.7139-53 (23.6% Fib. Exp.). He remains flat for now as he argues against entering short with prices trading in close proximity to support level and there is an absence of a defined bullish reversal signal. Meanwhile according to DailyFX Speculative Sentiment Index, 83 percent of retail Forex traders are short the GBP/USD.

GBP/USD 5 Minute Chart

GBP/USD Sinks Below 1.7075 As BOE Voted 9-0 To Leave Rate Unchanged

Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here

New to FX? START HERE!

Edward Hyon, DailyFX Research Team

Keep up to date on event risk with DailyFX Calendar

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

DISCLOSURES