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.

Free Trading Guides
EUR/USD
Mixed
GBP/USD
Bearish
USD/JPY
Bullish
Gold
Bullish
Oil - US Crude
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
Bitcoin
Mixed
More View more
Real Time News
  • The politics of the US and UK may be starkly divided but their grip on the vast, $6.6 trillion global foreign exchange trade seems as tight as ever. Get your market update from @DavidCottleFX here:https://t.co/xTKHOvrIqg https://t.co/z7ogzy00dy
  • What are the Market cycles? How are #currencies impacted in these cycles? How can these cycles impact #forextrading patterns? Find out here: https://t.co/ckr2fUOWqW https://t.co/g7iT8bpi7f
  • What are a few of the common trading mistakes made by traders? Find out from @WVenketas here: https://t.co/d3OFc4yGao #tradingstyle https://t.co/wQ1MAkOb0n
  • The UK population voted the Conservative government back in with a strong majority, giving PM Johnson the backing to push Brexit through. And Sterling (GBP) likes it. Get you $GBPUSD market update from @nickcawley1 here: https://t.co/tjCHWDxoWm https://t.co/Z7Vaadxy5r
  • #Gold prices may fall while the US Dollar gains even as economic policies championed by the Trump administration invite inflation. Get your $gld markets news from @IlyaSpivak here:https://t.co/4lHhHsby56 https://t.co/zF4EyLIRWM
  • Lessons from Bretton Woods are forgotten, the US-China #tradewar represents a true existential threat to the post-World War II international trade order, and in turn, the globalized economy that has grown out of the ashes of history. More from @CVecchioFX :https://t.co/paaBxX6Xt0 https://t.co/tcjkQnaBWl
  • What are the truths and myths of #forex trading? Find out from @DailyFX analysts here: https://t.co/uF75VPzstr #FOMOintrading https://t.co/bDXG2dV3wG
  • The US Dollar technical outlook against the Euro, British Pound, Australian Dollar and New Zealand Dollar are discussed. Large wicks left signs of indecision, will reversals follow? $EURUSD $GBPUSD $AUDUSD $NZDUSD - https://www.dailyfx.com/forex/technical/article/fx_technical_weekly/2019/12/15/US-Dollar-Technical-Outlook-EURUSD-GBPUSD-AUDUSD-NZDUSD.html?CHID=9&QPID=917702 https://t.co/dpuIppxo3F
  • What are some trading mistakes @nickcawley1 made during his career and what did he learn from them? Find out: https://t.co/y3cckNW22W https://t.co/vUQyVl6b0e
  • Growth linked currencies have gained as investors hope for progress on the trade front as well as stimulus from the Fed. The global economy however remains depressed and seems likely to remain so. Get your market update from @DavidCottleFX here: https://t.co/jt1HH9AHLM https://t.co/Yz65AMJYlm
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

2014-07-23 09:08:00
Edward Hyon,
Share:

Talking Point:

  • BOE Minutes Reveal an Interest Rate Vote of 9-0 By the MPC Members.
  • UK BBA Loans for House Purchase (Jun): 43265 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

News & Analysis at your fingertips.