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.



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
Wall Street
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
More View more
Real Time News
  • Trading Forex is not a shortcut to instant wealth, excessive leverage can magnify losses, and sentiment is a powerful indicator. Learn about these principles in depth here:
  • Risk management is one of the most important aspects of successful trading, but is often overlooked. What are some basic principles or risk management? Find out from @PaulRobinsonFX here:
  • The Japanese Yen is eyeing the upcoming Bank of Japan rate decision and CPI figures, but JPY crosses will likely remain dependent on broader market sentiment. Get your weekly $JPY forecast from @FxWestwater here:
  • Consolidation or bull flag? A bull flag is a continuation pattern that occurs as a brief pause in the trend following a strong price move higher. Learn how to better spot these formations here:
  • Crude and Brent oil are on track to extend higher as Gulf Coast supply disruptions and a positive OPEC report bolster sentiment. Uranium is on a massive surge, aided by the famous Wall Street Bets group. Get your market update from @FxWestwater here:
  • RT @michaeljburry: Read thread.
  • The Australian Dollar has retraced from August lows when looking at AUD/JPY and AUD/CAD. However, the AUD/NZD downtrend is intact, will a reversal there appear as well? Find out:
  • The S&P 500, Dow Jones and DAX 30 could be at risk of falling as retail traders continue increasing their upside exposure in these indices. What are the key technical levels to watch for? Find out from @ddubrovskyFX here:
  • The US Dollar continues to hold its ground against most ASEAN currencies as recent downtrends lose momentum. What is the road ahead for USD/SGD, USD/THB, USD/PHP and USD/IDR? Find out from @ddubrovskyFX here:
  • The Canadian Dollar has been caught in broad ranges against the Euro and the US Dollar, but can the upside bias in USD/CAD and EUR/CAD prolong? Find out here:
GBP/USD Plunges After UK Industrial Production And Before BoE Meeting

GBP/USD Plunges After UK Industrial Production And Before BoE Meeting

Edward Hyon,

Talking Points:

  • UK Industrial Production (MoM) (Jun): 0.3% Actual Vs 0.6% Estimated; -0.6% Prior.
  • UK Industrial Production (YoY) (Jun): 1.2% Actual Vs 1.5% Estimated; 2.3% Prior.
  • GBP/USD Hits A Fresh Day Low To Trade At 1.6821; BoE Policy Meeting Looms Ahead.

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

UK Industrial Production year-on-year, which measures the manufacturing output of the energy sector, factories, and mines, decelerated to 1.2 percent in June from 2.3 percent in May. This short-term indicator for the strength of UK industrial activity missed market expectations of 1.5 percent. Moreover, the month-on-month print registered at 0.3 percent in June, which was an acceleration compared to the prior month reading of -0.6 percent. However, it fell short of market’s forecast of 0.6 percent. This data can be important as uncontrolled levels of production and consumption can spark inflation, which eventually leads to monetary tightening.

Before the data release, the British Pound grinded lower against the US Dollar as it traded firmly above the psychologically significant 1.6800 level. Immediately after the data release, GBP/USD plunged to hit a fresh day low of 1.6821. This worst-than-expected industrial production figures adds to an increased deterioration relative to expectations in the UK data flow since late February. This may suggest that analysts have over-estimated the health of the UK economy and opened doors for a downward surprise for the British Pound says DailyFX Currency Strategist Ilya Spivak.

Glancingahead, the focus for the British Pound will turn to the high-profile Bank of England Rate (BoE) Decision, which is due on Thursday 11:00 GMT (Aug 7th). The general consensus is for the BoE to leave their interest rate on hold at 0.50 percent, a rate cut from 1 percent since February 2009. The BoE is also expected to report its mammoth £375 billion of asset purchases for the month of August.

For traders that respects technical analysis, Ilya Spivak mentions near-term support to rest at 1.6818-22 (38.2% Fib Ret.) and support-turned-resistance at 1.6935. He remains opportunistic to get short at a more attractive entry level rather than a trade-able rally. Meanwhile according to DailyFX Speculative Sentiment Index, the ratio of long to short positions in the GBP/USD stands at 1.27 as 56 percent of FXCM Retail Forex traders are long the cable.

GBP/USD 5 Minute Chart

GBP/USD Plunges After UK Industrial Production And Before BoE Meeting

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