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
Oil - US Crude
Bullish
Low
High
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
More View more
Real Time News
  • Trading bias allows traders to make informative decisions when dealing in the market. This relates to both novice and experienced traders alike. Start learning how you may be able to make more informed decisions here: https://t.co/rz7fqi8ZEe https://t.co/Gps2Xp32h9
  • Greed is a natural human emotion that affects individuals to varying degrees. Unfortunately, when viewed in the context of trading, greed has proven to be a hindrance more often than it has assisted traders. Learn how to control greed in trading here: https://t.co/kODPAfJE79 https://t.co/hftCEho1lM
  • Gold price action is primed for volatility next week with the Fed decision on deck. How real yields and the US Dollar react to fresh guidance from Fed officials will be key for gold outlook. Get your weekly gold forecast from @RichDvorakFX here: https://t.co/MzaIl7tPmZ
  • Forex liquidity makes it easy for traders to sell and buy currencies without delay, and also creates tight spreads for favorable quotes. Low costs and large scope to various markets make it the most frequently traded market in the world. Learn more here: https://t.co/arxYmtQeUn https://t.co/rFlQtyQS81
  • Canadian Dollar snapped a three-week losing streak after USD/CAD stalled at key technical resistance. Get your CAD weekly forecast from @MBForex here: https://t.co/BPHuKecwnz https://t.co/73OmuCKfU9
  • Forex quotes reflect the price of different currencies at any point in time. Since a trader’s profit or loss is determined by movements in price, it is essential to develop a sound understanding of how to read currency pairs. Learn how to read quotes here: https://t.co/CNtqrKWDBY https://t.co/KzhQnGiLyt
  • A currency carry trade involves borrowing a low-yielding currency in order to buy a higher yielding currency in an attempt to profit from the interest rate differential. Find out if the carry trade suits your trading style here: https://t.co/7t4BzmLg8w https://t.co/cuneuJNZlH
  • Get your snapshot update of the of top level exchanges and key index performance from around the globe here: https://t.co/d8Re5anlG5 https://t.co/danCiP5vqK
  • Traders utilize varying time frames to speculate in the forex market. The two most common are long- and short-term-time frames which transmits through to trend and trigger charts. Learn more about time-frame analysis here: https://t.co/9S5tXIs3SX https://t.co/JhYoQ7I19K
  • The Nasdaq 100 index is aiming to breach a key resistance level at 14,950 for a second time. A successful attempt may open the door to further gains, although the MACD indicator flags signs of weakness. Get your equities forecast from @margaretyjy here: https://t.co/BEYupi32qB https://t.co/PWeXE8tZVY
GBP/USD Trading Lower as UK Inflation Figures Miss Expectations

GBP/USD Trading Lower as UK Inflation Figures Miss Expectations

Oded Shimoni, Junior Currency Analyst

Talking Points:

- The British Pound trading lower versus other major currencies

- UK’s Core CPI at 1.2%, below expectations

- Headline CPI falls to 0.3% year-on-year vs 0.5% prior and expected

Showcase your trading skills against your peers in FXCM's $10,000 Monthly Challenge Here, but learn good trading habits with FXCM’s “Traits of successful traders” series

The British Pound traded lower versus other major currencies (at the time this report was written), after the UK’s Consumer Price Index (CPI) figures released today showed inflation slowed in April.

Headline CPI figure showed an annual rise of 0.3% percent, below the prior and expected reading of 0.5%. The month on month figure came below expectations as well, by printing 0.1% versus the expected figure of 0.3%, which was below the prior 0.4%.

Core CPI, which excludes volatile factors such as food, energy, alcohol, and tobacco, eased to 1.2% from the prior figure of 1.5%, and was below an expected 1.4% print.

Looking into the report, the Office for National Statistics signaled the causes for the drop in the CPI figures as lower cost of air fares and clothes.

CPI readings are a key measure for the BoE in deciding appropriate monetary policy. In their latest rate decision, the BoE kept policy unchanged, and warned that a “Brexit” from the European Union could bring lower growth, higher unemployment, and higher inflation.The bank also lowered growth projections for 2016 to 2% versus the prior 2.2%, while also lowering projections slightly for 2017 and 2018.

As was mentioned earlier today by DailyFX Currency Strategist Ilya Spivak, News-flow out of the UK has increasingly underperformed relative to consensus forecasts since early April, hinting at a downside surprise. With inflation far from the BoE target of 2%, hinting that tightening is still some way off, and Brexit concerns in the background, it seems the CPI figures missing expectations today might have added to an overall uncertain view for the UK economy, and British Pound declined versus other major currencies.

Meanwhile, the DailyFX Speculative Sentiment Index (SSI) is showing that about 50.73% of FXCM’s traders are long the GBP/USD at the time of writing, implying a lack of directional conviction for the pair by the retail trading crowd.

You can find more info about the DailyFX SSI indicator here

GBP/USD 5-Minute Chart: May 17, 2016

GBP/USD Trading Lower as UK Inflation Figures Miss Expectations

--- Written by Oded Shimoni, DailyFX Research

To contact Oded Shimoni, e-mail instructor@dailyfx.com

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

DISCLOSURES