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
  • Are you new to trading? Technical analysis of charts aims to identify patterns and market trends by utilising different forms of technical chart types and other chart functions. Get a refresher on technical analysis or begin building your knowledge here: https://t.co/qV3c7a4YR3 https://t.co/2Qka1WPhnE
  • Entry orders are a valuable tool in forex trading. Traders can strategize to come up with a great trading plan, but if they can’t execute that plan effectively, all their hard work might as well be thrown out. Learn how to place entry orders here: https://t.co/1mnOXUuBpt https://t.co/kloJCFmJty
  • The continuity seen across these volatility cycles is a good thing. Historical precedence offer a blueprint for identifying conditions supportive for a vol-event to occur, and how they may unfold. Deepen your knowledge of historical volatility here: https://t.co/vg7w10la3j https://t.co/wwxKQFibW6
  • *Reminder: Weekly Strategy Webinar tomorrow morning at 8:30am EST on DailyFX! A look at the levels heading into #FOMC - https://t.co/lxd5fZnn4H
  • 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/Nx6AHxZksK
  • Markets Week Ahead: Euro, Dollar, Gold, S&P 500, Earnings, Inflation Check out @RichDvorakFX's latest market recap and preview plus all the weekly forecasts from the @DailyFXTeam at the link below! Link to Analysis - https://www.dailyfx.com/forex/fundamental/forecast/weekly/title/2021/07/25/markets-week-ahead-euro-dollar-gold-sp500-fed-earnings-inflation.html $EURUSD $SPX #Trading
  • Looking for a new way to trade reversals? One of the most used reversal candle patterns is known as the Harami. Like most candlestick formation patterns, the Harami tells a story about sentiment in the market. Get better with trading reversals here: https://t.co/rfwUWJfbz9 https://t.co/xKkBwu951j
  • The non-farm payroll (NFP) figure is a key economic indicator for the United States economy. It is also referred to as the monthly market mover. Find out why it has been given this nickname here: https://t.co/yOUVEEqhc5 https://t.co/MYWlQphqtb
  • Knowing how to accurately value a stock enables traders to identify and take advantage of opportunities in the stock market. Find out the difference between a stock's market and intrinsic value, and the importance of the two here: https://t.co/QszmdZFxlk https://t.co/paOy1oQmn3
  • US indices have a packed week ahead with earnings from the major technology names, US GDP data due and an FOMC rate decision. With so much on the docket the potential for volatility is heightened. Get your stock market forecast from @PeterHanksFX here: https://t.co/CH4WoStHvu
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

Justin McQueen, Analyst

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