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
Oil - US Crude
Wall Street
More View more
Real Time News
  • Wall Street Futures Update: Dow Jones (+0.39%) S&P 500 (+0.33%) Nasdaq 100 (+0.30%) [delayed] -BBG
  • There are three major forex trading sessions which comprise the 24-hour market: the London session, the US session and the Asian session. Learn about the characteristics of each session here:
  • #2020election polls continue to show Democratic nominee Joe Biden maintaining a strong lead #Trump Supreme Court nomination may throw a wrench into bipartisan stimulus talks #AUDUSD is trading at former resistance-turned-support. What happens if it breaks?
  • USD/MXN pushes higher as a long-awaited correction in the US Dollar gets underway. Get your #currencies update from @HathornSabin here:
  • Emotions are often a key driving force behind #FOMO. If left unchecked, they can lead traders to neglect trading plans and exceed comfortable levels of risk. Read on and get your emotions in check here:
  • Join analyst @DavidJSong at 6:30 PM ET/10:30 PM GMT for your weekly update on key news trading events. Register here:
  • *Reminder: Weekly Strategy Webinar tomorrow morning at 8:30am EDT on DailyFX!
  • EUR/USD fell sharply last week and there are few signs yet that the selling is over. However, a bounce is likely before the decline resumes. Get your #currencies update from @MartinSEssex here:
  • The week ahead has many systemic issues that take control of the markets, but scheduled data is heavily skewed to the Dollar. Here is my video for the week ahead:
  • GBP turbulence persists as investors eye the next round of EU-UK Brexit negotiations. Cautious optimism signals a deal is near. Get your #currencies update from @PaulRobinsonFX here:
GBPUSD Pops Higher, BoE Says Credit to UK Households Set to Fall

GBPUSD Pops Higher, BoE Says Credit to UK Households Set to Fall

2017-07-13 09:27:00
Martin Essex, MSTA, Analyst

Talking Points

- GBPUSD has popped higher out of a rising channel in place since the beginning of this month.

- In its Credit Conditions Survey, the Bank of England says lending to households will likely fall back.

- Want to know where GBP could be heading? Check out our brand new Trading Guides: they’re free and have just been updated for the third quarter of 2017

GBPUSD has broken out to the upside from a falling channel but will need to stay above the channel resistance line to confirm that further strength could be on the way. Moreover, the pair eased a tad after the latest Bank of England Credit Conditions Survey forecast a drop in credit to UK households.

Chart: GBPUSD 30-Minute Timeframe (Month to Date)

GBPUSD Pops Higher, BoE Says Credit to UK Households Set to Fall

Chart by IG

In its survey, the central bank said the availability of secured credit to households was reported to have increased in the three months to mid-June 2017, driven by lenders’ market share objectives. But lenders expect availability to fall slightly over the next three months to mid-September, reflecting a changing appetite for risk.

Lenders also reported that the availability of unsecured credit to households had decreased in Q2, it added, and expected a further decrease in Q3. A changing appetite for risk was reported to be an important driver of this in Q2 and Q3, with a changing economic outlook also affecting expectations for Q3.

Earlier, the Pound was boosted by comments from a member of the BoE’s monetary policy committee in The Times newspaper. Ian McCafferty, one of the three rate-setters who voted for an increase last month, said the BoE should consider unwinding its £435 billion quantitative easing programme earlier than planned.

McCafferty added that the Bank ought to review its policy of leaving QE unchanged until interest rates are close to 2% and said he was minded to vote for a quarter-point rate rise again next month in a sign that the MPC will remain divided.

His comments came as the UK government prepares to introduce its Repeal Bill to Parliament today and followed news that UK house-price growth cooled in June as the inconclusive election weighed on demand, according to the Royal Institution of Chartered Surveyors.

--- Written by Martin Essex, Analyst and Editor

To contact Martin, email him at

Follow Martin on Twitter @MartinSEssex

Interested in learning more about trading the markets? Check out our Forex Educational section.

You can find other articles by Martin here.

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