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
More View more
Real Time News
  • It’s important for traders to be familiar with FX spreads as they are the primary cost of trading currencies. Understand a pair's spread here: https://t.co/zEEUHZBx7g https://t.co/jZHcyAZ5SU
  • Further your forex knowledge and gain insights from our expert analysts on EUR with our free guide, available today: https://t.co/XtydfV5wS6 https://t.co/Iw9haaHAnn
  • The Federal Reserve System (the Fed) was founded in 1913 by the United States Congress. The Fed’s actions and policies have a major impact on currency value, affecting many trades involving the US Dollar. Learn more about the Fed here: https://t.co/ADSC4sr63f https://t.co/raO3gCGqQ6
  • Key levels in forex tend to draw attention to traders in the market. These are psychological prices which tie into the human psyche and way of thinking. Learn about psychological levels here: https://t.co/8A1QhwMVKo https://t.co/rWVlBs6H3c
  • The update to the US Consumer Price Index (CPI) is likely to sway the US Dollar during the Federal Reserve’s blackout period as the central bank braces for a transitory rise in inflation. Get your weekly $USD forecast from @DavidJSong here: https://t.co/JTuP7CLlyi https://t.co/tOvqn3Gdpc
  • Becoming a forex trader means living and breathing the excitement, risk and reward of trading in the biggest and most liquid market in the world. Do you have what it takes? Read here to discover the qualities and processes it takes to build consistency: https://t.co/EfWEACQ6Cz https://t.co/s5dn4ZKnku
  • Becoming a forex trader means living and breathing the excitement, risk and reward of trading in the biggest and most liquid market in the world. Do you have what it takes? Read here to discover the qualities and processes it takes to build consistency: https://t.co/EfWEACyvdZ https://t.co/6VjW5FEiQW
  • Global stocks bounce back from recent pullback as key resistance levels lie ahead. Get your weekly equities forecast from @HathornSabin here: https://t.co/wXSWo1JygD https://t.co/vWVaSEQTXT
  • Do you know how to properly Identify a double top formation? Double tops can enhance technical analysis when trading both forex or stocks, making the pattern highly versatile in nature. Learn more about the double top formation here: https://t.co/t9FlspUVZz https://t.co/9kfBu04auM
  • Dealing with the fear of missing out – or FOMO – is a highly valuable skill for traders. Not only can FOMO have a negative emotional impact, it can cloud judgment and overshadow logic. Learn how you can control FOMO in your trading here: https://t.co/lgDf5ddzFV https://t.co/8GJ6OQYgnW
GBPUSD Price Action to be Impacted by Slew of BoE Speakers

GBPUSD Price Action to be Impacted by Slew of BoE Speakers

Justin McQueen, Strategist

GBPUSD Analysis and News

  • BoE speakers in focus for near-term GBP direction
  • August rate hike seen at a 34% chance

See how retail traders are positioning in GBPUSD as well as other major FX pairs on an intraday basis using the DailyFX speculative positioning data on the sentiment page.

BoE Speakers in Focus for GBP

This week will see a slew of BoE speakers, beginning with Silvana Tenreyro due to speak from 1700GMT, who was among one of the 7 MPC rate setters who voted against raising rates at the May Quarterly Inflation. Two other members who voted against raising rates last month is also due to speak with Jon Cunliffe speaking tomorrow at 1000GMT and Dave Ramsden on Thursday at 1500GMT (Both also voted against raising rates in November). These upcoming speeches will be key to gauge the likelihood of an August rate hike, any suggestions raising the probability of a summer rate rise could see GBPUSD lifted. (Speaker schedule on the DailyFX calendar, click here)

GBPUSD Price Action to be Impacted by Slew of BoE Speakers

Source: DailyFX (Bank of England Hawks/Doves Scale)

Rate Hike Probability

With June effectively written off as an opportunity for the BoE to raise rates, focus is on the August QIR meeting, whereby OIS markets are pricing in a 34% chance of a 25bps rate hike. Today’s Construction PMI alleviated concerns of a further deterioration in the UK economy with the reading above expectations at 52.5 (Exp. 52.0). Eyes on tomorrow’s Service PMI which is expected to tick up to 53 from 52.8. Incoming data and a talking up of monetary tightening by BoE members will be needed in order to raise the likelihood of a near term rate hike.

GBPUSD Price Action to be Impacted by Slew of BoE Speakers

Source: Thomson Reuters

For a more in-depth analysis on Sterling, check out the Q2 Forecast for GBP/USD

GBPUSD PRICE CHART: DAILY TIME FRAME (August 2017-June 2018)

GBPUSD Price Action to be Impacted by Slew of BoE Speakers

Chart by IG

Near-term base for GBPUSD resides at 1.33, while the next target for the pair is the 1.34 handle which also coincides with the 20DMA, currently acting as resistance. Next significant upside target will be the 1.3550 area whereby the 38.2% Fibonacci Retracement of the 1.2563-1.4377 rise is situated.

--- Written by Justin McQueen, Market Analyst

To contact Justin, email him at Justin.mcqueen@ig.com

Follow Justin on Twitter @JMcQueenFX

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

DISCLOSURES