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.

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
More View more
Real Time News
  • Goldman Sachs sees the Turkish Central Bank cutting rates by 100bps over next three central bank meetings
  • Cable has undergone a nice rally as of late, with it having risen over four figures off the September low.Get your $GBPUSD market update from @PaulRobinsonFX here:https://t.co/jdNzvlgecz https://t.co/kF4pZgwiOz
  • Forex Update: As of 14:00, these are your best and worst performers based on the London trading schedule: 🇯🇵JPY: 0.35% 🇨🇭CHF: 0.10% 🇪🇺EUR: -0.04% 🇬🇧GBP: -0.04% 🇦🇺AUD: -0.18% 🇳🇿NZD: -0.29% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/SSMahbp5s0
  • Indices Update: As of 14:00, these are your best and worst performers based on the London trading schedule: US 500: 0.01% Germany 30: -0.19% Wall Street: -0.21% France 40: -0.23% FTSE 100: -0.32% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/8116UpQzpE
  • Yen Pullback Begins: EUR/JPY, GBP/JPY, AUD/JPY, CAD/JPY https://www.dailyfx.com/forex/fundamental/daily_briefing/session_briefing/daily_fundamentals/2021/10/21/Yen-pullback-begins-EUR-JPY-EURJPY-GBP-JPY-GBPJPY-AUD-JPY-AUDJPY-CAD-JPY-CADJPY.html https://t.co/iZpZvFopiF
  • The oil price breakout has extended into the first level of lateral resistance- risk for some ‘back and fill’ here but the outlook remains constructive. Get your market update from @MBForex here:https://t.co/jdNzvkYCNZ https://t.co/OlqgYQLcxK
  • Tesla opened lower as afterhours trade yesterday suggested we would, but after the gap down, we've had a strong rally this morning. I wonder if the Robinhood-type crowd trades before/after hours or if that is the traditional segment https://t.co/tFVllKbBKb
  • Commodities Update: As of 14:00, these are your best and worst performers based on the London trading schedule: Gold: -0.02% Silver: -0.40% Oil - US Crude: -1.21% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/ek6GdiGhQ3
  • The Turkish Central Bank cut its weekly repo rate to 16%, marking a 200bps cut vs expectations for a 50-100bps reduction. Get your market update from @JMcQueenFX here: https://t.co/Gz3yZYqZdn https://t.co/C1PgJsCoGp
  • 🇺🇸 CB Leading Index MoM (SEP) Actual: 0.2% Expected: 0.4% Previous: 0.8% https://www.dailyfx.com/economic-calendar#2021-10-21
GBP/USD Rally on Optimistic BOE Inflation Report

GBP/USD Rally on Optimistic BOE Inflation Report

George Meng,

Talking Points:

  • BOE Quarterly Inflation Report appear more hawkish than dovish
  • Carney hint next step is for rate increase
  • BOE 2015 inflation forecast reduced from 1.4% to 0.5%

The Bank of England (BOE) published its Quarterly Inflation Report today at 10:30 GMT, presented by its Governor Mark Carney. In response to a more hawkish than anticipated tone communicated by Carney, the Pound popped straight through the session high of 1.5270 against the US Dollar to 1.5292. The market sees continued pressure on GBPUSD to drift upward and already above the daily S2 at 1.5330.

The BOE revealed today that it sees UK inflation to be above its 2% goal at the end of a 3-year horizon, whilst raising the 2016 and 2017 GDP growth forecast to 2.9% and 2.7% respectively. Carney expressed optimism in the UK economy, referring to “strong underlying dynamics” and pick-up in wage growth as well as unit labor cost. Furthermore, Carney sees slack to be eliminated by the middle of the forecast period, and hints for the next step in BOE monetary policy to “most likely” be a rate increase. Undercutting the optimism of the report, however, was the fact that 2015 inflation forecast was cut from 1.4% to just 0.5% by the central bank, siting weak inflation mostly due to oil and food costs. The BOE prepared the market for more downside risk to come, suggesting that inflation rate could drop below zero in coming months.

Recent risk events have contributed to a greater degree of volatility to persist within forex markets. Hours ago, the market saw more than 150 pips dip in the USDJPY and a run on bullish USD sentiment within the span of 10 minutes, as a reaction to the statement from the Band of Japan expressing “extra stimulus being counterproductive for now”. With Greek’s loan negotiations and its position within the Eurozone still under great uncertainty, tomorrow’s German GDP figures at 07:00 GMT will see a potentially sizable move on the Euro and its major peers including the US Dollar and the Pound Sterling.

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

GBP/USD Rally on Optimistic BOE Inflation Report

EUR/GBP (5 Min Chart)

GBP/USD Rally on Optimistic BOE Inflation Report

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