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
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