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
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
More View more
Real Time News
  • #PELOSI SAYS WE ARE GOING TO PASS THE INFRASTRUCTURE BILL THIS WEEK PELOSI SAYS SHE WILL NEVER BRING TO THE HOUSE FLOOR A BILL THAT DOESN'T HAVE THE VOTES TO PASS $USD $SPX $XAUUSD
  • Short-term uncertainties to keep the pressure on equity markets. Get your weekly equities forecast from @JMcQueenFX here: https://t.co/JLMDPZKvN8 https://t.co/YbdJnwoqj1
  • Many people are attracted to forex trading due to the amount of leverage that brokers provide. Leverage allows traders to gain more exposure in financial markets than what they are required to pay for. Learn about FX leverage here: https://t.co/BdgFmkRxVw https://t.co/hqW38VawJl
  • - Unreal atmosphere - Shame about the result, but no complaints - Usyk masterclass - Heavyweight division blown wide open https://t.co/BKCLJTDk9h
  • The USD could still rally a bit from here, but has resistance not far ahead that it will need to overcome if it is to extend to a larger degree. Get your weekly $USD technical forecast from @PaulRobinsonFX here: https://t.co/n0CVWWOJDe https://t.co/0uLjsQ2gwM
  • When it comes to buying and selling forex, traders have unique styles and approaches. Learn about buying and selling forex here: https://t.co/D8DXSAdpqC https://t.co/nfiFAlyYXv
  • Slippage can be a common occurrence in forex trading but is often misunderstood. Understanding how forex slippage occurs can enable a trader to minimize negative slippage, while potentially maximizing positive slippage. Learn about FX slippage here: https://t.co/Blrl0unrdT https://t.co/mIsVJ4zTbB
  • What is your forex trading style? Take the quiz and find out: https://t.co/YY3ePTpzSI https://t.co/hymrumanUY
  • Greed is a natural human emotion that affects individuals to varying degrees. Unfortunately, when viewed in the context of trading, greed has proven to be a hindrance more often than it has assisted traders. Learn how to control greed in trading here: https://t.co/kODPAfs2Iz https://t.co/6dAqxsVfxJ
  • The results of this weekend’s German Federal Election will likely dominate Euro sentiment at the start of the week ahead but after a possible EUR/USD bounce they will have little long-term impact. Get your weekly $EUR forecast from @MartinSEssex here: https://t.co/Xu3ZT7EtrW https://t.co/5VHKn52MaA
UK Data Supports BoE Rate Hike, UK Politics Does Not

UK Data Supports BoE Rate Hike, UK Politics Does Not

Justin McQueen, Strategist

GBPUSD Analysis and News

  • UK GDP shows growth continues to pick
  • Brexit Uncertainty amid political disarray weighs on Sterling

For a more in-depth analysis on Sterling, check out the Q3 Forecast for GBP/USD

UK Economy Picks up After Q1 Slowdown

The UK economy continued to pick up in May after the slowdown seen in Q1 amid the boost in service sector growth, while manufacturing and industrial activity data disappointed. Today saw the release of a new monthly reading for GDP, which will be looked at closely by the BoE as they decide on whether to raise the bank rate at next month’s policy meeting. ONS showed that the UK grew in line with expectations at 0.3% in May, marking a yearly reading of 1.5%, above consensus for 1.4%. However, despite the focus on the new GDP estimate, it was the weak manufacturing and industrial output data that prompted the selling in the Pound from 1.3295 to 1.3265 in an immediate reaction.

Economic Data Gives BoE Confidence to Raise Rates

Overall, the data suggests growth should pick up to 0.4%, as indicated by last week’s PMI data, which in turn implies that the weakness in Q1 had been temporary. Subsequently, this should give the Bank of England confidence to raise interest rates at August’s QIR.

Political Uncertainty is Biggest Catalyst for Sterling

As evidenced by yesterday’s price action, political uncertainty continues to be the biggest driver for the Pound in the short term. The resignation of Foreign Minister Boris Johnson led to a pullback in rate hike expectations for the BoE from 69% to 62% with a risk a no deal Brexit scenario increasingly likely, which is somewhat worrisome for the Bank of England who have based forecasts on a smooth Brexit transition. As such, any escalation of domestic politics involving a potential leadership contest for PM May could be enough to derail the BoE’s monetary policy path.

GBPUSD PRICE CHART: 1-MINUTE TIME FRAME (INTRADAY July 10, 2018)

UK Data Supports BoE Rate Hike, UK Politics Does Not

Chart by IG

GBP Analysis

IG Client Positioning shows that the fact traders are net-long suggests GBPUSD prices may continue to fall, find out more here

--- Written by Justin McQueen, Market Analyst

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

Follow Justin on Twitter @JMcQueenFX

https://www.dailyfx.com/free_guide-tg.html?ref-author=McQueen

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

DISCLOSURES