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
EUR/USD
Mixed
Oil - US Crude
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
Wall Street
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
Mixed
GBP/USD
Bullish
USD/JPY
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
More View more
Real Time News
  • Why financial market traders must monitor both monetary and fiscal policy? Find out from @MartinSEssex here:https://t.co/Fkzk88Y5gm https://t.co/tHp0Nb3Tr5
  • USD/JPY is bucking the trend in USD weakness, tentatively putting it on a path towards higher levels. Get your $USDJPY technical analysis from @PaulRobinsonFX here: https://t.co/RnrBCFE3gt https://t.co/hTSdTcIwZY
  • The Canadian Dollar gained with government bond yields. Might USD/CAD find its way to current 2020 lows? Canada’s benchmark stock index, the TSX Composite, faces the March high.Get your $USDCAD market update from @ddubrovskyFX here:https://t.co/0Ba8E2S7vC https://t.co/JLUTzF6xlY
  • IG Client Sentiment is warning that the S&P 500, gold prices and AUD/USD could fall ahead as upside exposure accumulates. What are key technical levels to watch for next? Find out from @ddubrovskyFX here: https://t.co/YsBypn73vy https://t.co/erPb9HMRVc
  • The US Dollar could be readying to rise against the Singapore Dollar and Indonesian Rupiah ahead. Will USD/PHP and USD/MYR also follow this outlook? Find out from @ddubrovskyFX here: https://t.co/xvMPZha5SB https://t.co/P9QLmnY1Fg
  • The Euro has been struggling to maintain its upside momentum. Is EUR/USD readying to turn lower? EUR/AUD may be aiming to rise, but has EUR/CAD topped? Find out from @ddubrovskyFX here: https://t.co/vlJM3iQIYS https://t.co/8FGl10wDto
  • Third consecutive weekly gain in the #SP500 as of today's close, rising 0.63% #Fed balance sheet gained by 0.18% over the same period after shrinking -0.06% previously Generally speaking, the size of the b/s has remained more or less unchanged for a month https://t.co/0TrEA5RGmA
  • The outlook for gold might look a little tenuous at the moment, but this won’t be the first time a strong bull market has shown signs of a potential top due to short-term price action. Get your $XAUUSD technical analysis from @PaulRobinsonFX here: https://t.co/N8a84hRnHN https://t.co/jCEkFzCxEr
  • Well, I don't know who has had it worse this week: Barca or Kodak
  • GBP/USD is either treading water at resistance and is nearing a breakout or is working on developing a top. Get your $GBPUSD technical analysis from @PaulRobinsonFX here:https://t.co/RnrBCFE3gt https://t.co/bDWWjzT57m
GBP Up as BoE Raises Rates In Surprise Unanimous Vote, Dips on Rate Guidance

GBP Up as BoE Raises Rates In Surprise Unanimous Vote, Dips on Rate Guidance

2018-08-02 12:05:00
Justin McQueen, Analyst
Share:

GBPUSD Analysis and News

  • Bank of England Raises Rates to 0.75% in Surprise 9-0 Vote Split
  • However, Bank of England Signals No Rush for Next Rate Hike

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

Bank of England Hikes Rates to 0.75%

As markets had expected the Bank of England hiked the bank rate by 25bps to 0.75%, however, what was unexpected was the vote split, which had surprised with a 9-0 vote (Exp. 7-2 vote). As such, this had provided an initial lift to the Pound, with GBPUSD rising 40pips to 1.3129. However, gains were quickly reversed with the BoE signaling no rush for the next rate hike given the uncertainty surrounding Brexit, which the central bank noted that the Brexit responses could influence policy significantly. As such, the implied rates curves is relatively unchanged with another hike not fully priced in until September 2019.

Bank of England Forecast

Forecasts

2018

2019

2020

2021

GDP

1.5% (Prev. 1.4%)

1.8% (Prev. 1.7%)

1.7% (Prev. 1.7%)

1.7%

CPI

2.5% (Prev. 2.4%)

2.2% (Prev. 2.1%)

2.1% (Prev. 2%)

2%

Source: Bank of England

Cautious Growth and Inflation Judgements

The MPC recognized that growth in Q2 had shown a pickup from the soft data in Q1, as such, they continue to expect a pick up to 0.4%, which is still relatively subdued, while business surveys have suggested Q3 growth will be similar. In regard to inflation, the MPC noted that the 2.4% in June was below the bank’s forecasts, adding that this signals slightly weaker inflation pressures. As such, this is a rather cautious rhetoric out of the Bank of England.

GBP/USD PRICE CHART: 1-Minute Time Frame (August 2nd)

GBP Up as BoE Raises Rates In Surprise Unanimous Vote, Dips on Rate Guidance

Chart by IG

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.

--- 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.

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.