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
Wall Street
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
  • Heads Up:🇮🇱 Interest Rate Decision due at 13:00 GMT (15min) Expected: 0.1% Previous: 0.1%
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 92.55%, while traders in Germany 30 are at opposite extremes with 80.61%. See the summary chart below and full details and charts on DailyFX:
  • LIVE NOW: Join Technical Strategist @MBForex for his Weekly Strategy Webinar to review the setups we're tracking into the weekly open!
  • $EURUSD has strengthened today, now trading back above the 1.2000 level for the first time since early March amidst further weakness from the US Dollar. $EUR $USD
  • Forex Update: As of 12:00, these are your best and worst performers based on the London trading schedule: 🇬🇧GBP: 0.73% 🇨🇭CHF: 0.66% 🇯🇵JPY: 0.65% 🇦🇺AUD: 0.44% 🇪🇺EUR: 0.44% 🇨🇦CAD: 0.10% View the performance of all markets via
  • Weekly Strategy Webinar starting in 15mins on DailyFX!!
  • The US Dollar has continued lower today. The $DXY dropped from above 91.60 to around 91.10, hitting its lowest level since early March. The Dollar has headed back lower since hitting a multi month high around 93.40 at the end of March. $USD
  • What are some key insights into trading stocks? Build your strategy and hone your trading skills here:
  • Please join @MBForex at 8:30 EST/12:30 GMT for your weekly scalping webinar. Register here:
  • Heads Up:🇧🇷 BCB Focus Market Readout due at 11:30 GMT (15min)
GBP/USD Plunges on BoE Rate Cut and More QE, Growth Outlook Slashed

GBP/USD Plunges on BoE Rate Cut and More QE, Growth Outlook Slashed

Oded Shimoni, Christopher Vecchio, CFA,

Talking Points:

- The British Pound plunged versus other major currencies post-BOE.

- BOE cut rate to 0.25% by a unanimous decision - scope for further cuts too.

- Asset Purchase Facility (the BOE’s QE programme) increased to £435b on a split decision

The British Pound plunged versus other major currencies after today’s Bank of England (BOE) rate decision saw the bank rate cut to record lows at 0.25%, as was expected by economists.

The Monetary Policy Committee (MPC) voted unanimously to cut the main rate to 0.25%.

The MPC voted by a split decision to boost the Asset Purchase Facility (the BOE’s QE programme) for a total of £435b from the prior £375b.

The bank also announced the purchase of up to £10 billion of UK corporate bonds in the next 18 months, and new "Term Funding Scheme" to reinforce the pass-through of the cut in the bank rate.

The BOE said that those measures will be financed by issuance of the central bank reserves.

Eight members supported the introduction of a corporate bond scheme (Forbes was against); six members supported further purchases of UK government bonds (Weale, Mccafferty and Forbes were against).

The MPC emphasized they can do more if needed, including further cuts to the key rate.

With the rate cut decision highly expected (the market basically priced in a 100% probability of a cut), attention quickly turned to the other elements in the statement and the Quarterly inflation report.

Contrary to the anticipated rate cut, expectations were only slightly tilted for a hold on a boost to the Asset Purchase Facility. As we mentioned today, this was likely to catch some participants on the wrong side, as it seems the QE addition was perhaps more than the market anticipated.

The other major element of the announcement was the revisions to inflation and growth outlook. The inflation report revealed that the central bank cut its growth forecast for 2017 to 0.8% from the prior 2.3%, while 2018 growth is now seen at 1.8% from 2.3%, on the backdrop of estimated weaker investment and consumption due to Brexit.

The BOE forecast only 0.1% expansion this quarter and left the 2016 number unchanged at 2.0%. This indicates that the central bank do not see a recession on the horizon due to their new measures.

Inflation is forecasted to reach the bank’s 2% target in Q4’17 versus Q2'18 prior, as the weaker Sterling on the Brexit vote adds to inflationary pressures.

Meanwhile, the DailyFX Speculative Sentiment Index (SSI) is showing that about 58.3% of traders are long the GBP/USD at the time of writing as traders flipped net long on the drop, apparently trying to pick a bottom. The SSI is mainly used as a contrarian indicator implying further weakness ahead.

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

Chart 1: GBP/USD 5-Minute Chart (Intraday August 4, 2016)

GBP/USD Plunges on BoE Rate Cut and More QE, Growth Outlook Slashed

--- Written by Oded Shimoni, Junior Currency Analyst; Video produced by Christopher Vecchio, Currency Strategist

To contact Oded Shimoni, e-mail

Follow him on Twitter at @OdedShimoni

To contact Christopher Vecchio, e-mail

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.