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
Bearish
Oil - US Crude
Mixed
Wall Street
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
Gold
Mixed
GBP/USD
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
USD/JPY
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
  • The non-farm payroll (NFP) figure is a key economic indicator for the United States economy. It is also referred to as the monthly market mover. Find out why it has been given this nickname here: https://t.co/yOUVEEqhc5 https://t.co/qtAmyhFU9A
  • Get your snapshot update of the of relative currency strength and exchange status from around the globe here: https://t.co/H19vRDCpUJ https://t.co/S74APOiQ3y
  • Two of the main Euro-pairs, $EURUSD and $EURGBP, are being driven by very different drivers. Get your market update from @nickcawley1 here: https://t.co/Vd32Y6HKEr https://t.co/Lgb5z5V1Xa
  • Recessions can devastate the economy and disrupt the fortunes of individuals, businesses, and investors. But economic decline in the business cycle is inevitable, and your trading can be defined by how you respond to crisis. learn how to prepare here: https://t.co/e4CnobJCss https://t.co/9uPXNvDBS5
  • We ended this past week with another cliffhanger. The $SPX teeters on the edge of a breakdown from the post-pandemic recovery. While we have NFPs and other key data ahead, the markets are likely to remain fixated on yields. My outlook for next week: https://www.dailyfx.com/forex/video/daily_news_report/2021/02/27/SP-500-Dollar-Reversal-Hinge-Not-On-NFPs-but-Markets-Risk-Imagination.html?ref-author=Kicklighter&QPID=917719&CHID=9 https://t.co/mlNDDyTgex
  • Make smart trading decisions with your free guide to trade the news. Download your free guide here.https://t.co/pb5E2KgRzW #DailyFXGuides https://t.co/70ZOJ0ZMwF
  • Looking for a new way to trade reversals? One of the most used reversal candle patterns is known as the Harami. Like most candlestick formation patterns, the Harami tells a story about sentiment in the market. Get better with trading reversals here: https://t.co/rfwUWJfbz9 https://t.co/SyroornFf5
  • MACD who? The Moving Average Convergence Divergence (MACD) is a technical indicator which simply measures the relationship of exponential moving averages (EMA). Find out how you can incorporate MACD into your trading strategy here: https://t.co/ZNs4QhQGQ6 https://t.co/KrMcyZZqO7
  • The Reserve Bank of Australia (RBA) rate decision may spark a bullish reaction in $AUDUSD as the central bank is expected to retain the current course for monetary policy. Get your market update from @DavidJSong here: https://t.co/WbcR9ER0qT https://t.co/TynsqCtPQ6
  • Gold has broken below a critical support confluence we’ve been tracking for months now and the risk remains for further losses while below this threshold in the weeks ahead. Get your $XAUUSD market update from @MBForex here:https://t.co/xgN2obaIWR https://t.co/H71ufPNkPg
British Pound Looking Stronger As Trade Data Beat Expectations

British Pound Looking Stronger As Trade Data Beat Expectations

Martin Essex, MSTA, Analyst

Talking Points

- GBPUSD is rallying after its falls over the past week.

- UK trade data for October came in much better than many analysts were expecting.

- However, political rather than economic factors continue to dominate trading.

GBPUSD is firmer Friday, recouping some of its losses over the past week, after news of a smaller than expected UK trade deficit. However, the optimism was tempered by news of big upward revisions to previous months following an error by the Office for National Statistics in how trade in gold was recorded.

The figures showed the trade deficit in October narrowing to £1.971 billion from £5.812 billion in September – an upward revision from the previously announced £5.2 billion.The deficit in goods alone narrowed to £9.711 billion in October from September’s upwardly revised £13.832 billion – a much bigger improvement than the £11.8 billion deficit economists had forecast.

By contrast, construction output fell slightly on the month and in the three months to October continued its downward trend. Output in the sector dropped by 0.6% in October compared with growth of 0.9% in September and economists’ forecasts of a modest 0.2% rise.

Meanwhile, the Bank of England/TNS Quarterly Survey showed a jump in the public’s near-term inflation expectations but the Bank’s rate-setting Monetary Policy Committee is likely to be please by news of only a limited rise in long-term expectations and by a forecast that inflation is actually expected to be lower in two years, at 2.5%, than in a year, at 2.8%.

Taken together, the numbers helped extend an earlier rally in GBPUSD.

Chart 1: GBPUSD 5-minute Chart (December 9, 2016 Intraday)

British Pound Looking Stronger As Trade Data Beat Expectations

The improvement in the UK trade data likely reflect the weakness of the British Pound in the aftermath of the Brexit decision to leave the European Union. However, there’s little doubt that the main drivers of the currency at present are the tortuous negotiations to bring the Brexit referendum result into practice.

Also, for now at least, the main driver of GBPUSD will be the US side of the equation, with the Federal Open Market Committee expected to raise US interest rates next week and perhaps drop some hints about further increases in the New Year. While higher US rates remain in prospect, the market’s bias to buy the Dollar looks set to remain intact.

--- Written by Martin Essex, Analyst and Editor

To contact Martin, email him at martin.essex@ig.com

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

DISCLOSURES