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
Bearish
Oil - US Crude
Bullish
Wall Street
Bearish
Gold
Mixed
GBP/USD
Bearish
USD/JPY
Mixed
More View more
Real Time News
  • 🇫🇷 Balance of Trade (JAN) Actual: €-3.95B Previous: €-3.39B https://www.dailyfx.com/economic-calendar#2021-03-05
  • The Consumer Price Index, better known by the acronym CPI, is an important economic indicator released on a regular basis by major economies to give a timely glimpse into current growth and inflation levels. Learn how to better understand CPI here: https://t.co/nAa0fHHGbZ https://t.co/pBlhEa03sI
  • Heads Up:🇫🇷 Balance of Trade (JAN) due at 07:45 GMT (15min) Previous: €-3.39B https://www.dailyfx.com/economic-calendar#2021-03-05
  • China Foreign Ministry Spokesman Wang Wenbin: Fighting virus requires solidarity, nations to cooperate China, US should cooperate to counter virus - BBG
  • (Commodities Briefing) Gold Prices at Risk as Crude Oil Benefits from Surprise OPEC+ Output Hold #Gold #CrudeOil #OPEC #nfp https://www.dailyfx.com/forex/fundamental/daily_briefing/daily_pieces/commodities/2021/03/05/Gold-Prices-at-Risk-as-Crude-Oil-Benefits-from-Surprise-OPEC-Output-Hold.html?CHID=9&QPID=917702&utm_source=Twitter&utm_medium=Dubrovsky&utm_campaign=twr https://t.co/7MckHTReTu
  • The New Zealand Dollar may resume its broader uptrend, with NZD/USD and NZD/JPY eyeing key rising support. NZD/CAD and NZD/CHF appear to have more room for near-term losses, however.Get your market update from @ddubrovskyFX here:https://t.co/6hD7zsNHIh https://t.co/zYKUh6mVj1
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 92.87%, while traders in Germany 30 are at opposite extremes with 66.27%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/rNFAg78N7v
  • Forex Update: As of 05:00, these are your best and worst performers based on the London trading schedule: 🇨🇦CAD: 0.00% 🇨🇭CHF: -0.04% 🇯🇵JPY: -0.07% 🇪🇺EUR: -0.11% 🇦🇺AUD: -0.19% 🇳🇿NZD: -0.33% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/hpiN5FbuNz
  • Indices Update: As of 05:00, these are your best and worst performers based on the London trading schedule: Wall Street: -0.32% US 500: -0.38% Germany 30: -0.65% France 40: -0.80% FTSE 100: -0.89% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/B19fwTOt3O
  • Bitcoin and Ethereum look set to climb higher in the near term, as Citigroup and Goldman Sachs prove additional validation to the cryptocurrency market. Get your market update from @DanielGMoss here:https://t.co/uqdtJGoz1E https://t.co/MbQulbtGyN
GBP/USD Sold-Off to No Rate Hike Votes, Mixed Labour Data

GBP/USD Sold-Off to No Rate Hike Votes, Mixed Labour Data

George Meng,

Talking Points:

  • BOE interest rate vote 9-0 (against change); Asset-purchase vote 9-0 (against change)
  • ILO Unemployment Rate (3M)(NOV) Actual 5.8% vs 5.9% Surveyed and 6.0% Prior
  • Market will be focused on risk events including tomorrow’s ECB Quantitative Easing decision

UK’s November labour market data came out a mixed bag today, with the decision for no interest rate hike driving sentiment on the Pound to dip below 1.5084 against the US Dollar. The Bank of England was ‘unanimous’ in voting 9 – 0 against a rate hike, a possibility which now looks overly optimistic considering weak growth in the UK and Eurozone area, and major risk events taking place in the near term. UK ILO Unemployment Rate (3M)(NOV) beat forecast of 5.9% to be at 5.8%, as well as Average Weekly Earnings (3M/YoY)(NOV) matching the surveyed 1.7%. UK Employment Change (3M/3M)(NOV) however fell past expectations to be a meagre 37K, indicating employment figures to have increased only half of the 74K that was anticipated, and less than a third of the prior reading of 115K.

Upon the data release GBP/USD fell 60 pips, or 0.39%, as the market abandons prospects for any near term interest rate rise by the BOE that will provide support to the Sterling. There is little to alter the 6 month long down-trend for the pair, as risk sentiment in the Eurozone continues to weigh in, and deflation appearing to be a more material threat for the UK economy. With yesterday’s global growth rate forecast by the International Monetary Fund, downgraded from 3.8% to 3.5% for 2015, medium term economic outlook for the world remains bleak, and risk averse money flow is continuing to flow into safe haven assets including the US Dollar, Japanese Yen and Gold.

Looking ahead, all eyes will be on the European Central Bank tomorrow as pressure to tackle Eurozone’s deflationary spiral has driven up expectation of large scale Quantitative Easing from the bank. The slowdown of China’s economic growth, an engine that has been fuelling global demand, to a 24-year low will provide additional backing for an announcement of Eurozone Sovereign bond purchases programme to follow tomorrow’s ECB meeting. The size of the programme, as well as any restrictions on the type of Sovereign bonds to be purchased, will ultimately determine the trends that will remain prevalent in the coming weeks and months. According to the DailyFX Speculative Sentiment Index, the ratio of long to short positions in the GBP/USD currently stands at 1.50 as 60% of FXCM retail traders are long.

GBP/USD (5 Min Chart) - Created using Marketscope 2.0

GBP/USD Sold-Off to No Rate Hike Votes, Mixed Labour Data

Get Real-Time Feedback on Your Trades with DailyFX on Demand!

Written by George Meng, any comments, suggestions, or feedback please email instructor@dailyfx.com

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES