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
Mixed
Oil - US Crude
Bearish
Wall Street
Mixed
Gold
Bullish
GBP/USD
Mixed
USD/JPY
Bullish
More View more
Real Time News
  • Indices Update: As of 05:00, these are your best and worst performers based on the London trading schedule: US 500: 0.46% Germany 30: 0.45% FTSE 100: 0.39% France 40: 0.34% Wall Street: 0.32% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/rC1dmc9ks0
  • The #HSI Hang Seng Index surged 2% to above the 30,000 mark, led by strong gains in the technology sector: - Tencent (+8.39%) - Meituan (+5.4%) - Alibaba (+3.8%) - Xiaomi (+2.85%)
  • Commodities Update: As of 03:00, these are your best and worst performers based on the London trading schedule: Silver: 0.40% Gold: -0.05% Oil - US Crude: -0.23% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/YeFZeGAfDd
  • Dealing with the fear of missing out – or FOMO – is a highly valuable skill for traders. Not only can FOMO have a negative emotional impact, it can cloud judgment and overshadow logic. Learn how you can control FOMO in your trading here: https://t.co/lgDf5cVYOn https://t.co/0R0BcQrzFG
  • Forex Update: As of 03:00, these are your best and worst performers based on the London trading schedule: 🇳🇿NZD: 0.34% 🇦🇺AUD: 0.23% 🇨🇦CAD: 0.22% 🇪🇺EUR: 0.03% 🇯🇵JPY: -0.01% 🇨🇭CHF: -0.03% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/umNdpg33Bg
  • #Bitcoin, #Ethereum Outlook: ETH Poised to Outperform BTC in Near Term - https://www.dailyfx.com/forex/market_alert/2021/01/25/Bitcoin-Ethereum-Outlook-ETH-Poised-to-Outperform-BTC-in-Near-Term.html?CHID=9&QPID=917708&utm_source=Twitter&utm_medium=Moss&utm_campaign=twr $BTC $ETH $BTCUSD $ETHUSD https://t.co/Pc6e2Grumq
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 100.00%, while traders in Wall Street are at opposite extremes with 64.73%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/ArnUc6hllq
  • Tune in to @IlyaSpivak 's #webinar at 10:00 PM ET/3:00 AM GMT for insight on the cross-market outlook in the week ahead. Register here: https://t.co/E213bTtq5C https://t.co/Sj2NSgZ4xD
  • Central banks often deem it necessary to intervene in the foreign exchange market to protect the value of their national currency. Learn how central bank intervention can impact your trading here: https://t.co/8G8mUX4so6 https://t.co/MAn2EL32sU
  • In the week ahead, around 25% of S&P 500 companies will release their results, including GE, Johnson & Johnson, 3M, Microsoft, Boeing, AT&T, Facebook, Apple, Tesla, Visa and Amazon. Read more on my earnings outlook report. https://www.dailyfx.com/forex/fundamental/forecast/weekly/title/2021/01/17/Dow-Nasdaq-SP-500-Outlook-Earnings-May-Bring-Positive-Surprises.html
Bank of England Considering Contingency amid Brexit Fears

Bank of England Considering Contingency amid Brexit Fears

Varun Jaitly,

Talking Points:

  • FinMin George Osborne discusses contingency plans for undesired volatility during referendum
  • UK Treasury releases paper on the economic impact of Brexit citing hit to GDP
  • Increased Brexit risk threatens to put markets on edge due to uncertainty around vote

Having trouble trading in the FX markets? This may be why.

Amid the ongoing debate in the UK over the pros and cons of an exit from the EU, the Treasury and Bank of England have not kept silent. On April 18th the Treasury released a report detailing the economic risk to the UK from a potential “Brexit”, as well as a comparison of the country’s current trade policies and alternatives in the case of an exit from the single market. The report suggested that the three most logical trade alternatives for the UK would hurt GDP and labor growth over the next 15 years.

Chancellor of the Exchequer George Osborne came out in defense of the report Wednesday and commented on the significant event risk being created by the threat of a Brexit in the markets. In his address to Parliament he said “I think there would be very significant financial volatility around a vote to leave”. Osborne also said that the BOE and the Treasury are seriously considering contingency options to undertake around the time of the vote. In March, the BOE decided it would offer three additional indexed long-term repo operations around the time of the referendum vote, June 23rd, to help bolster liquidity. The move by the BOE would increase the repos from the usual once a month to 4 for that month.

Economic data going into the EU Referendum (‘Brexit’ vote) remains mixed with the most recent NIESR GDP estimate showing growth at 0.3 percent, slightly cooler than the 1Q actual GDP growth rate of 0.4 percent – itself the slowest pace of expansion in three years. The unemployment rate remains steady at 5.1 percent which is a 10 year low. In the Treasury report, there are 3 suggested trade models that would be viable alternatives; and they are all expected to have a negative impact on both GDP, employment and the inflation rate. The uncertainty of a vote to leave the EU has been cited as cause for the markets remaining on edge as the referendum date approaches. This uncertainty can be seen below in the 2 month implied volatility levels for GBPUSD, which have risen sharply over the last 2 months.

Bank of England Considering Contingency amid Brexit FearsBank of England Considering Contingency amid Brexit Fears

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

DISCLOSURES