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
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
Wall Street
Bearish
Gold
Bullish
GBP/USD
Mixed
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
USD/JPY
Bearish
More View more
Real Time News
  • Commodities Update: As of 19:00, these are your best and worst performers based on the London trading schedule: Silver: 0.79% Gold: 0.49% Oil - US Crude: -0.57% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/piPjZBulsC
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 100.00%, while traders in NZD/USD are at opposite extremes with 67.03%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/n7ndExFIaG
  • 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/rz7fqhRoMG https://t.co/qg1uMXcmx8
  • Indices Update: As of 19:00, these are your best and worst performers based on the London trading schedule: US 500: 0.17% Germany 30: 0.08% France 40: 0.07% Wall Street: 0.04% FTSE 100: 0.02% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/0M3Lwae8uH
  • The British Pound nudged higher over the week across the board and this pattern is expected to continue in the weeks ahead as traders watch the UK’s Covid-19 vaccination plan. Get your $GBP update from @nickcawley1 here: https://t.co/OvFP8Zzz5b https://t.co/2TSLOehS4M
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 100.00%, while traders in NZD/USD are at opposite extremes with 66.83%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/ElMUYZ7p9R
  • The rest of the New York trading session is absent major scheduled event risk with US markets closed for the Martin Luther King Jr holiday. There is always a risk of unscheduled developments
  • Commodities Update: As of 17:00, these are your best and worst performers based on the London trading schedule: Silver: 0.50% Gold: 0.41% Oil - US Crude: -0.55% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/eXSdZgvVeB
  • Despite China's better-than-expected 6.5% 4Q GDP report, $USDCNH is still up on the day. There is strong external influence on this rate, but Dollar still exerts the greater pressure. If it breaks 6.50 and Biden keeps pressure on China trade, I'll be watching https://t.co/5W5tcfeTZ5
  • Forex Update: As of 17:00, these are your best and worst performers based on the London trading schedule: 🇯🇵JPY: 0.19% 🇨🇭CHF: 0.05% 🇪🇺EUR: -0.02% 🇨🇦CAD: -0.16% 🇦🇺AUD: -0.25% 🇳🇿NZD: -0.28% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/BrmnTuolx0
Brexit Risk in Focus as BOE Holds Rates, Warns on Risks to Economy

Brexit Risk in Focus as BOE Holds Rates, Warns on Risks to Economy

Christopher Vecchio, CFA, Summer Xing,

Talking Points:

- Bank of England leaves main rate unchanged at 0.50%, as it has since March 2009.

- BOE holds asset purchase program unchanged at £375 billion.

- Minutes reveal consensus that overhand of Brexit uncertainty is hurting the UK economy.

Earlier today, the Bank of England held its main interest rate unchanged at 0.50% as expected, where its been since March 2009, while concurrently leaving its asset purchase plan at £375 billion. The Bank of England’s Monetary Policy Committee sets monetary policy to meet the medium-term +2% inflation target, and with 12-month CPI inflation was +0.3% in May, it remains well below the +2% inflation target. The shortfall is predominantly due to the ongoing drags from energy and food prices (though said influences should dissipate by end-of-year).

The main point of focus, however, was regarding uncertainities surrounding the referendum vote that will take place next Thursday, June 23. This was has had the effect of leading to “delays to major economic decision,” according to BOE Governor Mark Carney. Governor Carney emphasized the potential impact of the UK’s referendum to leave the European Union. The MPC said that “a vote to leave the European Union could materially affect the outlook for output and inflation.” Market chatter has been swirling about a potential BOE rate cut in the event of a Brexit, which may be contributing to the Sterling’s weakness over the past few weeks as Brexit odds have risen.

With the Federal Reserve saying on Wedneday that the referendum was factored in its decision to remain interest rates unchanged, and the Swiss National Bank and the Bank of Japan keeping their rates unchanged, the Bank of England emphasized that the referendum was having an increasingly widespread impact on the global economy. The MPC added that the vote remains the “largest immediate risk facing U.K financial maket, and possibly also global financial markets.” Indeed, other central banks could lose credibility around the referendum, depending upon the outcome and their subsequent responses.

See the DailyFX economic calendar for Thursday, June 16, 2016

Chart 1: GBP/USD 1-minute Chart: June 16, 2016 Intraday

Brexit Risk in Focus as BOE Holds Rates, Warns on Risks to Economy

In the wake of the release, the British Pound extended its declines on the day, heading toward a two-month low against the US Dollar at $1.4078, trading lower by down -0.71% at the time of writing. The Speculative Sentiment Index (SSI) read +1.914 at last check, with retail traders 66% long and 34% short, suggesting a bearish bias to the pair. Learn more about and follow SSI in real time here.

Read more: FOMC, BOJ Make One Thing Clear: Don’t Take Brexit Lightly

--- Written by Christopher Vecchio, Currency Strategist and Summer Xing, DailyFX Research

To contact Christopher Vecchio, e-mail cvecchio@dailyfx.com

Follow him on Twitter at @CVecchioFX

To be added to Christopher’s e-mail distribution list, please fill out this form

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

DISCLOSURES