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
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
Oil - US Crude
Mixed
Wall Street
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
Gold
Bullish
GBP/USD
Bullish
USD/JPY
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
More View more
Real Time News
  • Commodities Update: As of 02:00, these are your best and worst performers based on the London trading schedule: Gold: 0.00% Oil - US Crude: -0.13% Silver: -0.37% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/rO6XynukTE
  • The US Dollar still remains under pressure against most ASEAN currencies heading into May. A busy week awaits the Indonesian Rupiah, Thai Baht, Philippine Peso and Singapore Dollar. Get your market update from @ddubrovskyFX here:https://t.co/Ed95511S7Y https://t.co/8lJQ0eheXN
  • Forex Update: As of 02:00, these are your best and worst performers based on the London trading schedule: 🇳🇿NZD: 0.13% 🇦🇺AUD: 0.05% 🇪🇺EUR: 0.03% 🇬🇧GBP: 0.01% 🇨🇭CHF: -0.05% 🇯🇵JPY: -0.13% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/5vSj1gpuhD
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 89.94%, while traders in France 40 are at opposite extremes with 81.32%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/w9YlTeEscN
  • Dogecoin continues to trade higher with explosive energy, attesting to the cryptocurrency's new clout. Meanwhile, Bitcoin and Ethereum sink. Get your market update from @FxWestwater here:https://t.co/ohw714KqB2 https://t.co/7tbKUVpC3F
  • S&P 500 Index May Lead Nikkei 225 and ASX 200 Higher Amid Reflation Theme https://www.dailyfx.com/forex/market_alert/2021/05/06/SP-500-Index-May-Lead-Nikkei-225-and-ASX-200-Higher-Amid-Reflation-Theme.html https://t.co/7bBBmKeVUR
  • RT @Sonnenshein: ANNOUNCEMENT: We're excited to kick off our partnership with the @Giants making @Grayscale the first #crypto sponsor of an…
  • Natural gas prices moved higher, capturing a long-term trendline that could support the heating commodity's price in the coming weeks as colder temps support fundamental side. Get your market update from @FxWestwater here:https://t.co/tGUDJE9hn0 https://t.co/Wpu8eWHIXz
  • Heads Up:🇬🇧 Local Elections due at 00:00 GMT (15min) https://www.dailyfx.com/economic-calendar#2021-05-06
  • Heads Up:🇯🇵 BoJ Monetary Policy Meeting Minutes due at 23:50 GMT (15min) https://www.dailyfx.com/economic-calendar#2021-05-05
British Pound and UK Consumer Confidence Take a Hit

British Pound and UK Consumer Confidence Take a Hit

Daniel Dubrovsky, Strategist

Talking Points:

  • UK consumer confidence fell to -13 in December versus -12 expected, lowest outcome in 4 years
  • The British Pound became one of the worst performing majors during early Thursday’s session
  • GBP/USD is running out of room to consolidate, will it push higher and clear falling resistance?

Have a question about why the British Pound did what it did? Join a Q&A webinar and ask it live!

The British Pound became one of the worst performing majors during early Thursday’s trading session as more sour news related to the UK crossed the wires. Earlier on Wednesday, the IMF downgraded its prediction for economic growth in this country to 1.6% this year from 1.7%.

GfK consumer confidence clocked in at -13 in December versus -12 expected. This was the lowest outcome since December 2013, four years ago. Other aspects of the report showed that the economic and personal finances outlook held steady at -28 and +2 respectfully. The other downgrade happened in the climate for major purchases, which fell to -4 from -3.

The decline in UK consumer confidence occurred amidst recent Brexit-related developments. Last week, Theresa May suffered a legislative defeat by 309 to 305 where pro-European Conservatives backed an amendment to her EU withdrawal bill over parliament’s right to a meaningful vote on the Brexit deal.

In addition, the Prime Minister conceded on Wednesday that Brexit could be delayed until after March 2019. She also insisted that it would only be in “exceptional circumstances for the shortest possible time”. Lower consumer confidence in this context may lead to less consumption, particularly if there is more uncertainty if Brexit ends up being delayed.

British Pound and UK Consumer Confidence Take a Hit

On a daily chart, GBP/USD has been trying to push lower after breaking out of a range established in early October. However, it is quickly running out of space to consolidate due to the wedge created by the falling resistance line in early December (see chart below).

A break below the upper boundary of the October range would put the rising trend line from April in sight. Should GBP/USD continue lower after that, the next major support area might be the lowery boundary of the October range.

Should GBP/USD push above the December falling resistance line, the 23.6% Fibonacci retracement around 1.3449 could be the next target. A break above that would expose the 14.6% minor Fibonacci retracement level around 1.3528.

British Pound and UK Consumer Confidence Take a HitBritish Pound and UK Consumer Confidence Take a Hit

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

DISCLOSURES