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.

Free Trading Guides
EUR/USD
Mixed
GBP/USD
Mixed
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
Gold
Bullish
Oil - US Crude
Bearish
Bitcoin
Mixed
More View more
Real Time News
  • The $USD might be in the process of reversing its two-year uptrend, but technical positioning cautions eager sellers against over-committing. Get your $DXY market update from @IlyaSpivak here: https://t.co/RrifbHfNut https://t.co/VMPintsxrU
  • LIVE NOW: Join Senior Strategist @IlyaSpivak as he discusses the outlook for the financial markets in the week ahead! Register here: https://www.dailyfx.com/webinars/889679267?utm_source=Twitter&utm_medium=DFXGeneric&utm_campaign=twr
  • New Zealand’s Credit Card Spending (YoY) (SEP) Actual: 4.8% Est: N/A Previous: 6.0% #NZD
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 96.04%, while traders in Germany 30 are at opposite extremes with 78.67%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/IiZHpM8u3p
  • Heads up: New Zealand’s Credit Card Spending (YoY) (SEP) is due at 2:00 GMT (15 min) Est: N/A Previous: 6.0% #NZD
  • Heads Up:🇳🇿 NZD Credit Card Spending (YoY) (SEP) due at 02:00 GMT (15min), Actual: N/A Expected: N/A Previous: 6.0% https://www.dailyfx.com/economic-calendar#2019-10-21
  • China’s New Home Prices (MoM) (SEP) Actual: 0.53% Est: N/A Previous: 0.58% China’s 1-Year Loan Prime Rate (OCT) Actual: 4.20% Est: 4.15% Previous: 4.20% And China’s CNY 5-Year Loan Prime Rate (OCT) Actual: 4.85% Est: 4.83% Previous: 4.85% #CNY
  • LIVE IN 30 MIN: Join Senior Strategist @IlyaSpivak as he discusses the outlook for the financial markets in the week ahead! Register here: https://www.dailyfx.com/webinars/889679267?utm_source=Twitter&utm_medium=DFXGeneric&utm_campaign=twr
  • Heads Up:🇨🇳 CNY 5-Year Loan Prime Rate (OCT) due at 01:30 GMT (15min), Actual: N/A Expected: 4.83% Previous: 4.85% https://www.dailyfx.com/economic-calendar#2019-10-21
  • Heads Up:🇨🇳 CNY 1-Year Loan Prime Rate (OCT) due at 01:30 GMT (15min), Actual: N/A Expected: 4.15% Previous: 4.2% https://www.dailyfx.com/economic-calendar#2019-10-21
Sterling Bulls Offered Hope as Bank of England Raises August Rate Hike Bets

Sterling Bulls Offered Hope as Bank of England Raises August Rate Hike Bets

2018-06-21 11:32:00
Justin McQueen, Analyst
Share:

GBPUSD Analysis and News

  • GBP Surges After 6-3 Hawkish Vote Split
  • Market Pricing for an August Rate Hike rises to 45% from 33% prior to announcement

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 Offers Sterling Bulls Some Hope

The Bank of England unsurprisingly kept rate unchanged at 0.5%, however, the vote-split of 6-3 had grabbed the attention, with the BoE Chief Economist, Haldane, (first time a Chief Economist has dissented in 7yrs) joining McCafferty and Saunders as the hawkish dissenter. Subsequently, GBPUSD rose to session highs from 1.3130 to 1.3190 as money markets reprice an August rate hike, which is now seen at 46% from 33% prior to the announcement.

Sterling Bulls Offered Hope as Bank of England Raises August Rate Hike Bets

Source: Thomson Reuters (Current Bank of England Rate Hike Expectations)

Temporary Q1 Economic Weakness

The MPC stated that they were more confident that the weakness observed in Q1 was temporary, as such, they boosted their forecast for Q2 growth to 0.4% from 0.2%. In regard to inflation, the BoE expects CPI to pick up more than expected in the near term due to the rise in oil prices, which in turn increases the necessity for the BoE to hike in order to bring inflation back towards their 2% target (CPI sits at 2.4% currently). Additionally, the BoE altered its guidance on asset purchases, having stated that reduction will not take place until when the Bank Rate reaches 1.5% as opposed to 2% previously.

GBP/USD PRICE CHART: 1-MINUTE TIME FRAME (Intraday)

Sterling Bulls Offered Hope as Bank of England Raises August Rate Hike Bets

Chart by IG

GBP Traders Look out for Carney

Eyes will now towards Bank of England Governor Carney in which he is set to speak at 2015GMT at the Mansion House. Subsequently, focus will be on whether the Governor provides a strong signal for a potential hike in August. Reminder, Carney last spoke on May 24th and stated that the BoE could tolerate a lengthier inflation overshoot and endorsed gradual path for rate rises.

Additional articles on GBP

--- 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

News & Analysis at your fingertips.