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.

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
EUR/USD
Mixed
Oil - US Crude
Mixed
Wall Street
Bullish
Gold
Mixed
GBP/USD
Bearish
USD/JPY
Mixed
More View more
Real Time News
  • Bond markets will be on edge all week, with several measures of inflation due from around the globe (Mexico, China, US, Australia, Brazil, Germany, and India). Get your market update from @CVecchioFX here:https://t.co/DO83Zc6UQu
  • Bitcoin bears exert force, driving Bitcoin back below the 50k psychological level BTC/USD support showing around a Fibonacci level. Get your $btc market update from @Tams707 here:https://t.co/2Kf1ZV0PjC https://t.co/B3XO6V3QYD
  • Time to break out some ratios like commercial real estate property tickers (eg $SPG) relative to Amazon ($AMZN) or Carnival Cruise ($CCL) relative to Netflix ($NFLX)
  • Forex Update: As of 21:00, these are your best and worst performers based on the London trading schedule: 🇨🇦CAD: -0.07% 🇬🇧GBP: -0.11% 🇦🇺AUD: -0.42% 🇪🇺EUR: -0.54% 🇳🇿NZD: -0.59% 🇨🇭CHF: -0.63% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/VvEMwfDftX
  • Rising yields (the aggregate yield I mentioned earlier is overlaid and inverted in red here) is dragging gold lower. The 60-day correlation (3 trading month) between $GC_F and yields is the strongest net negative since Oct 2019 https://t.co/Myo0FlsvJA
  • Commodities Update: As of 21:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: -0.42% Silver: -0.47% Gold: -1.10% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/fxdEWv4bfo
  • The Australian Dollar now risks a deeper March correction with the AUD/USD price reversal approaching multi-month uptrend support. Get your $AUDUSD market update from @MBForex here:https://t.co/jYfBrd5b22 https://t.co/tbU9BM3n3L
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 92.43%, while traders in Germany 30 are at opposite extremes with 80.92%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/W16EBX7wwK
  • US equities end the day mixed, as market participants continue to rotate $DOW 31801.91 +0.97% $SPX 3821.22 -0.54% $NDX 12299.0 -2.92% $RTY 2202.99 +0.49% $VIX 26.24 +6.41%
  • Indices Update: As of 21:00, these are your best and worst performers based on the London trading schedule: Wall Street: -0.01% US 500: -0.01% France 40: -0.28% Germany 30: -0.29% FTSE 100: -0.34% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/LqhrKYMQFh
GBP/USD Surges Above 1.6650 As BOE Voted 7-2 To Leave Rate Unchanged

GBP/USD Surges Above 1.6650 As BOE Voted 7-2 To Leave Rate Unchanged

Edward Hyon,

Talking Points:

  • BOE Minutes Reveal an Interest Rate Vote of 7-2 By the MPC Members.
  • GBP/USD Surge After The BOE Minutes To Trade Above 1.6650
  • Looking Ahead The July’s FOMC Minutes Will Take Center Stage.

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

The much anticipated Bank of England (BoE) Minutes for the month of August revealed that BOE policy makers were split on an interest rate hike. The interest rate vote (7-2) showed two MPC members (BOE’s Weale and McCafferty) were calling for a 25 basis-point rate hike in August justified by the strong economic growth in the UK. However, the majority were reluctant for a rate increase as they argue an early rise may leave the economy exposed to shocks such as putting pressure on indebted households and derail economic growth. Moreover, the majority remarked that the recent weaker-than-expected CPI prints and outlook from the UK did not justify a rate increase.

Ahead of the BOE Minutes, the British Pound fell as low as the critical 1.6600 level against the US Dollar. Immediately after the release, GBP/USD surged over 40 pips to trade above the psychologically significant 1.6650 level. Moreover, the UK 10-year Gilt yield rose 4 basis-points to 2.44 percent after the BOE Minutes. This suggest that traders are increasing their bets for the BOE to raise interest rate sooner-than-later. The emergence of MPC members siding with the more hawkish stance may be the catalyst for surge in GBP/USD says DailyFX Currency Strategist Ilya Spivak.

Looking ahead, July’s FOMC Minutes by the Federal Reserve will take center stage and is scheduled to be released at 18:00 GMT, later today. If the rhetoric from the FOMC minutes remain dovish, it may act to weigh on the greenback says DailyFX Currency Analyst David De Ferranti. For the remainder of the week, the key event risk is expected to come from China’s PMI data and Jackson Hole.

For those forex traders that endorse technical analysis, Ilya Spivak mentions near-term support rests at 1.6611 (23.6% Fib Exp.) and resistance at 1.6659 (14.6% 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, the ratio of long to short positions in the GBP/USD stands at 1.76 as 64 percent of traders are long.

GBP/USD 5 Minute Chart

GBP/USD Surges Above 1.6650 As BOE Voted 7-2 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