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
Please try again
Oil - US Crude
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
Wall Street
More View more
Real Time News
  • What are some monetary policies that could affect Gold this quarter? Get your Gold free forecast here: #DailyFXGuides
  • Even more remarkable than the record high levels of leverage registered in US equities this past week was the attention it garnered. Paying attention to risk is a threat when markets are this high and the docket as dense as it is this week. My outlook:
  • Consolidation or bull flag? A bull flag is a continuation pattern that occurs as a brief pause in the trend following a strong price move higher. Learn how to better spot these formations here:
  • Are you new to trading? Technical analysis of charts aims to identify patterns and market trends by utilising different forms of technical chart types and other chart functions. Get a refresher on technical analysis or begin building your knowledge here:
  • USD hegemony is at risk thanks to changes in the global economy and the long-term consequences of the US-China trade war. Get your market update from @CVecchioFX here:
  • Did you know a Doji candlestick signals market indecision and the potential for a change in direction. What are the top five types of Doji candlesticks? Find out
  • Use this technical analysis pattern recognition skills test to sharpen your knowledge:
  • The formation of several bullish technical patterns suggests that the haven-associated Japanese Yen is at risk of further losses against the Euro and Australian Dollar. Get your market update from @DanielGMoss here:
  • Natural gas is moving lower after weather models pointed to warmer-than-average temperatures across much of the US. Get your market update from @FxWestwater here:
  • Gold and silver prices may continue to rise in the coming months on the back of falling real rates of return and the prospect of additional fiscal support under a Biden administration. Get your market update from @DanielGMoss here:
GBP/USD Higher on Soft Markit/CIPS Services PMI, ‘Brexit’ in Focus

GBP/USD Higher on Soft Markit/CIPS Services PMI, ‘Brexit’ in Focus

Oded Shimoni, Junior Currency Analyst

Talking Points:

- UK’s Markit/CIPS Services PMI at 52.3, below the 53.5 expected

- EU referendum has had a profound effect on the sector, Markit says

- British pound traded higher versus other majors after the news hit the wires

Showcase your trading skills against your peers in FXCM's $10,000 Monthly Challenge Here

The British Pound traded higher versus other major currencies (at the time this report was written) after today’s Markit/CIPS Services PMI fell in April. The diffusion index, by Markit Economics, printed 52.3 from the prior reading of 53.7. The number was below economists’ expectations of a 52.3 figure.

Markit/CIPS Composite PMI, which is a combined index of both services and manufacturing, decreased to 51.9 from the prior 53.6 print, and was below the expected 53.2 figure, after Tuesday’s Markit Manufacturing PMI came out weak. The data today also follows a fall in Construction PMI yesterday.

A number above 50 points to an expansion, below 50 to a contraction.

In Tuesday’s Manufacturing PMI report, Markit said that there is now greater pressure on the service sector to sustain GDP growth. After today’s report, Markit remarked that the PMI surveys are collectively indicating a nearstalling of economic growth in the UK, down from 0.4% in Q1 to just 0.1% in April.

The report emphasized ‘Brexit’ concerns as a prime factor contributing to the fall in the service sector, saying the looming referendum has had a profound effect, keeping prices relatively stagnant and delaying new orders.

Interestingly, Markit remarked that the low figures are in the territory which has in the past seen the Bank of England start to worry about the need to revive growth, either by cutting interest rates or through non-standard measures such as QE.

With that being said, the BoE commented in their latest monetary policy decision that 'Brexit' effects are likely to make macroeconomic and financial market indicators harder to interpret over the next few months, which will make the bank more cautious in interpreting data.

After Tuesday's manufacturing figures saw a substantial decline in the GBP/USD, with the figure falling below the 50.0 level for the first time since 2013, the market may have anticipated a bigger miss coming into today’s services data release. It seems that the while the figures came below the initial anticipated figures, the market interpreted the data as sufficient to generate a positive response when the news came out, and the British Pound traded higher versus other majors.

The DailyFX Speculative Sentiment Index (SSI) reveals 50.4% of FXCM's GBP/USD traders are long this pair at the time of writing, implying a lack of directional conviction by the retail trading crowd.

You can find more info about the DailyFX SSI indicator here.

GBP/USD 5 Minute Chart: May 5, 2016

GBP/USD Higher on Soft Markit/CIPS Services PMI, ‘Brexit’ in Focus

--- Written by Oded Shimoni, DailyFX Research

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