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
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
More View more
Real Time News
  • RT @onlyyoontv: #China central bank declares #virtualcurrency-related business activities as illegal. No legal tender/crypto exchange; exch…
  • GDP (Gross Domestic Product) economic data is deemed highly significant in the forex market. GDP figures are used as an indicator by fundamentalists to gauge the overall health and potential growth of a country. Learn use GDP data to your advantage here: https://t.co/Yl9vM73cHA https://t.co/2wzX4dacYJ
  • When it comes to buying and selling forex, traders have unique styles and approaches. Learn about buying and selling forex here: https://t.co/D8DXSzVO22 https://t.co/HiE4d0KG1Q
  • Trading bias allows traders to make informative decisions when dealing in the market. This relates to both novice and experienced traders alike. Start learning how you may be able to make more informed decisions here: https://t.co/rz7fqi8ZEe https://t.co/xRvmfd2jiJ
  • PBoC will also strengthen management of information on internet about cryptocurrencies
  • PBoC issues notice to further prevent and dispose of risks from Cryptocurrency speculation and will strengthen monitoring of risks from Crypto trading Adds that cryptocurrency-related activities are illegal
  • China State Planner says they will not allow financial support for new Crypto mining projects or allow these projects to participate in electricity markets
  • China State Planner issues notice on crackdown on Cryptocurrency mining
  • Risk management is one of the most important aspects of successful trading, but is often overlooked. What are some basic principles or risk management? Find out from @PaulRobinsonFX here: https://t.co/IsnpfIZNKr https://t.co/GMN6Vs857w
  • 🇩🇪 Ifo Business Climate (SEP) Actual: 98.8 Expected: 98.9 Previous: 99.6 https://www.dailyfx.com/economic-calendar#2021-09-24
GBP Soars on Brexit Boost by EU's Barnier

GBP Soars on Brexit Boost by EU's Barnier

Justin McQueen, Strategist

GBP Analysis and Talking Points

  • GBPUSD reclaims 1.30 on positive Brexit newsflow
  • GBPUSD at risk of further short squeeze with net shorts highest since May 2017

See our Q3 GBP forecast to learn what will drive the currency through the quarter.

The Pound reclaims 1.30 amid a raft of positive Brexit commentary from EU Chief Negotiator Barnier, who stated that the EU are open to discussing other backstops for the Irish border, adding that they are ready to simplify checks. Reminder, this followed source reports earlier this week that Germany and the UK are said to drop key Brexit demands and seek less details with regard to post Brexit ties.

As has been mentioned previously, the reaction to these comments from Barnier emphasise that GBP is attractive on dips with the Pound more reactive to positive news, given that the markets have priced in bearish news. This has been highlighted in speculator positioning with GBP shorts at the highest since May 2017, suggesting that the attractiveness to chasing GBP lower has reduced.

GBP Soars on Brexit Boost by EU's Barnier

Demand for Protection Against GBP Declines Reduced

Within the option market, demand among investors for hedging against further declines in GBP has been redcuced, with 3-month 25 delta risk reversals pulling off recent lows. This has typically tracked the spot price and as such, suggests that GBP is due a bounce back. Of note, this metric also covers the Brexit deadlines in October and November.

GBP Soars on Brexit Boost by EU's Barnier

Source: Thomson Reuters

Additional Analysis on Sterling and Brexit

GBP: Sterling Building A Base on Brexit Progress – Nick Cawley, Market Analyst

GBPAUD Long: Re-priced No-Deal Brexit Risk, US-China Trade War Continues – Justin McQueen, Market Analyst

--- 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