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.



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
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
Wall Street
More View more
Real Time News
  • Join @DanielGMoss's #webinar at 9:45 PM ET/1:45 AM GMT for live date coverage of the #RBNZ rate decision here:
  • The US Dollar, British Pound, and Euro will all be closely watching key geopolitical developments in North America (Powell testimony), the UK (Brexit talks) and Europe (EU summit). Get your market update from @ZabelinDimitri here:
  • Gold and silver are at risk of extending their slide from monthly highs as the lack of additional fiscal stimulus and rising geopolitical tensions underpin USD. Get your market update from @DanielGMoss here:
  • #Nasdaq 100 Recovering? Biden-Trump #Election2020 Betting Spread Widens⬇️
  • Join @ddubrovskyFX 's #webinar at 8:00 PM ET/00:00 PM GMT to find out what information you can gain from knowing what other traders are buying or selling. Register here:
  • The US Dollar is struggling against ASEAN currencies despite weakness in the S&P 500. Capital remains flowing into emerging markets, keeping USD under pressure, could this change? Find out from @ddubrovskyFX here:
  • Retail CFD traders have poked their head back into net bullish territory - an uncommon territory - in their net positioning for the $DJIA (Wall Street). Skeptical of a breakdown it seems
  • The Nasdaq 100-tracking QQQ ETF saw more than -$3.4 billion leave its coffers on Friday. Get your #Nasdaq market update from @PeterHanksFX here:
  • The $QQQ ETF recently saw its largest outflow, followed by its largest inflow since October 2000 What does this mean for the Nasdaq? Read more -
  • Forex Update: As of 20:00, these are your best and worst performers based on the London trading schedule: 🇨🇦CAD: 0.05% 🇳🇿NZD: -0.49% 🇪🇺EUR: -0.55% 🇨🇭CHF: -0.58% 🇬🇧GBP: -0.62% 🇦🇺AUD: -0.74% View the performance of all markets via
GBP/USD Plunged As BoE Voted 7-2 And Raised Concerns For Global Outlook

GBP/USD Plunged As BoE Voted 7-2 And Raised Concerns For Global Outlook

2014-10-22 08:49:00
Edward Hyon,

Talking Points:

  • BOE Minutes Reveal an Interest Rate Vote of 7-2 By the MPC Members.
  • GBP/USD Plunged After The BOE Minutes To Trade At A Session Low Below 1.6100.
  • Looking Ahead October’s US CPI Figures Will Take Center Stage.

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

The Bank of England Minutes from October’s policy meeting revealed that BoE committee voted 7 -2 for a hold interest rate decision, which is at 0.5 percent. The BoE’s Weale and Mccafferty, the minority, voted for a 25 basis-point rate increase in October’s policy meeting as they see potential risk of wage growth to pick up sharply. They further alluded to record-low interest rate causing an unbalanced recovery in the UK. However, the majority saw weaker Eurozone and the global economic outlook to have deteriorated, slowing export growth. Thus, rate hike may act as a hindrance for the UK economy.

Ahead of BoE Minutes, the British Pound lost ground against the US Dollar as broke below 1.6100 level. It hit a session low of 1.6070. After the release of BoE Minutes, GBP/USD plunged to 1.6039 as majority MPC members showed reluctance to raise rates amid concerns in the Eurozone and the rest of world. This was reflected in the bond market as UK 10-year Gilt fell 2 basis-points at 2.15 percent.

Preceding ahead, attention will shift to USD Consumer Price Index for the month of September, which will cross the wires at 12:30 GMT later today. The core inflation data is expected to remain the same as the prior month’s reading of 1.7 percent, while the year-on-year CPI figure is expected to edge slightly lower to 1.6 percent from 1.7 percent. Moreover, both gauge for inflation remain below the Federal Reserve’s price-growth target of 2 percent, which may mean low rates for longer. This will potentially bode-ill for the US Dollar as it recently surged due to the anticipation of the Fed transitioning to normalize rates. However, DailyFX Currency Strategist Ilya Spivak mentions of a possible upside surprise, if CPI reading is better-than-expected, which could help rekindle 2015 Fed rate hike expectations and boost the US Dollar.

For those Forex traders that respects technical analysis, Ilya Spivak mentions near-term support to rest at 1.6066 (14.6% Fib Ret.) and resistance at 1.6184 (23.6% Fib Ret.). He remains on the sidelines and wait to see how positioning evolves in the hours ahead of the BoE Minutes before committing to a trade. Meanwhile, according to DailyFX Speculative Sentiment Index, the ratio of long to short positions in the GBP/USD stands at 1.04 as 51 percent of FXCM retail traders are long.

GBP/USD 5 Minute Chart

GBP/USD Plunged As BoE Voted 7-2 And Raised Concerns For Global Outlook

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.