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
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
GBP/USD
Bearish
USD/JPY
Bullish
Gold
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
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
  • Have you been catching on your @DailyFX #podcast "Global Markets Decoded"? Catch up on them now, before new episodes release! https://t.co/mk1w1DM2Rh https://t.co/rEVhCnC0vY
  • Asia’s vast and growing importance to the world economy is not yet matched by the presence of a currency trading center to rival the established order. Get your update on market drivers in Asia here: https://t.co/r3Ku0p9dw1 https://t.co/I1AA0UEyWq
  • Geopolitical developments send #oil prices soaring or falling. Get your market update from @MartinSEssex here:https://t.co/XVXLyG8vjq #OOTT https://t.co/o4zt4pmSzc
  • The $USDINR may fall as the Nifty 50 rises after the US and China avoided tariff escalation and Indian CPI increased at its fastest pace since July 2016 amid on onion shortage. Get your market update from @ddubrovskyFX here:https://t.co/iXLf98geXL https://t.co/uVwbkkkl09
  • My weekend trading video: 'A #Dow and Yuan Retreat Could Break 2019's Bullish Complacency' https://www.dailyfx.com/forex/video/daily_news_report/2019/12/14/A-Dow-and-Yuan-Retreat-Could-Break-Break-2019s-Bullish-Complacency.html?CHID=9&QPID=917719
  • The $USD may extend declines against its ASEAN counterparts after the Fed rate decision. The Philippine Peso and Singapore Dollar are attempting key technical breakouts. Get your market update from @ddubrovskyFX here:https://t.co/JoPLb4Oi2q https://t.co/fKzeBlWaCx
  • Negative yielding government bonds – What are they telling us? Find out from @nickcawley1 here: https://t.co/F6JuhmrvPT https://t.co/Mf9e1cgWmR
  • The #Euro jumped higher to challenge range resistance capping upside progress since mid-October. Signs of ebbing momentum warn it may be back on defense soon. Get your market update from @IlyaSpivak here: https://t.co/MGqVDEWhUD https://t.co/rQRxJAmLWi
  • RT @zerohedge: Is The Market Up This Week? Just Ask The Fed's Balance Sheet https://t.co/6p01J9yAZ8
  • $USD: "The US Dollar is making a last-ditch effort to cling onto a key technical support level after dropping 3% from its 2019 high as risk appetite roars and the Fed inflates its balance sheet." - via @DailyFX Full Analysis: https://www.dailyfx.com/forex/fundamental/us_dollar_index/usd_trading_today/2019/12/14/us-dollar-outlook-fx-volatility-rising-from-extreme-lows-usd-levels-to-watch.html https://t.co/87cITJPVQa
GBP/USD Extends Losses Below 1.6200 As UK CPI Slows To A 5-Year Low

GBP/USD Extends Losses Below 1.6200 As UK CPI Slows To A 5-Year Low

2014-09-16 08:56:00
Edward Hyon,
Share:

Talking Points:

  • UK CPI (YoY) (Aug): 1.5% Actual versus 1.5% Estimated; 1.6% Prior.
  • UK CPI Core (YoY) (Aug): 1.9% Actual versus 1.8% Estimated; 1.8% Prior.
  • GBP/USD Remains Directionless After UK CPI Figures Came In At Expectation.

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

The UK Consumer Price Index (CPI) revealed prices for goods and services, including food and gas, rose by 1.5 percent year-on-year in August compared to 1.6 percent in July. This matched market expectations, but UK inflation has slowed to a 5-year low on food prices. Meanwhile, UK Core CPI, which strips away energy and food prices as it can be volatile, increased 1.9 percent year-on-year in August versus 1.8 percent in July. This edged slightly higher than economists’ forecast. The CPI is the key measure of inflation for the UK and is used by Bank of England as a key gauge in making interest rate decisions. However, DailyFX Currency Strategist Ilya Spivak has mentioned of a limited follow-through as traders may wait for the outcome of Thursday’s Scottish Independence Referendum.

Ahead of the data, the British Pound lost ground against the US Dollar to trade below the critical 1.6200 level. Subsequent to the release of the figures, GBP/USD extended losses as UK CPI figures slowed the most in five-years and in line with expectations.

Progressing ahead, key event risks are ahead for GBP/USD. For instance, Bank of England Minutes are set to be released tomorrow (08:30 GMT), in addition to the high-profile FOMC Rate Decision, which is followed by Janet Yellen’s Press Conference. The times for these critical events can be found on DailyFX Economic Calendar. It isn’t over yet for the British Pound as it faces a condemning Scottish Independence Referendum on Thursday. DailyFX Chief Currency Strategist John Kicklighter says “the lack of clarity on the fallout from this event, secondary concerns of fading BoE rate forecasts and already elevated volatility levels in FX markets is likely to keep the Pound on edge.”

From a technical spectacle, Ilya Spivak mentions near-term support to rest at 1.6217 (14.6% Fib Ret.) and resistance at 1.6320 (23.6% Fib Ret.). He is in favor of a long position for GBP/USD, but Scottish Independence Referendum looms ahead and a “Yes” outcome will bode severely ill on the currency pair. With that key event risk in mind, he remains flat for the time being. Meanwhile according to DailyFX Speculative Sentiment Index, the ratio of long to short positions in the GBP/USD stands at 1.21 as 55 percent of FXCM retail traders are long.

GBP/USD 5 Minute Chart

GBP/USD Extends Losses Below 1.6200 As UK CPI Slows To A 5-Year Low

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.