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
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
GBP/USD
Mixed
USD/JPY
Mixed
Gold
Bullish
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
Bitcoin
Mixed
More View more
Real Time News
  • While Sino-US trade jitters are temporarily abating, China-Swedish trade tensions are rising as a part of a political contagion of growing economic hostilities between nations across the world. Get your market update from @ZabelinDimitri here:https://t.co/F1fVoyzoz5 https://t.co/z49NzgZrXd
  • RT @malkudsi: Natural Gas Eyes Pushing Higher as Support Holds - Nat Gas Technical Analysis More details in the link below: https://t.co/HG…
  • As prices dance around on charts, traders are often looking for reasons to explain price movements; however, the underlying source of price movement boils down to the relationship between supply and demand. Learn more about the forces of S&D on forex here: https://t.co/8LfkLXbj2W https://t.co/swcuwAMGAk
  • How can traders avoid #FOMO in trading? Start by implementing a well-heeled plan taking only four hours per week. Get your insight from @JStanleyFX here: https://t.co/vwUShQPc27 #tradingstyle https://t.co/4adyTWvQ22
  • What are the Market cycles? How are #currencies impacted in these cycles? How can these cycles impact #forextrading patterns? Find out here: https://t.co/ckr2fUOWqW https://t.co/gLJGj1FAOC
  • Central bank independence has several advantages and disadvantages. Find out what they are in-depth with @MartinSEssex here: https://t.co/wVFXbbTxf1 https://t.co/J0MMkVmCUu
  • Get your stock market basics right - what is the stock market and how does stock trading work? Find out here: https://t.co/JfAJLAtlsY https://t.co/ZfPUxHWeiG
  • The Mexican economy contracted for the first time in almost 10 years in 2019, but growth is expected to pick up in 2020 according to its finance minister. Get your $USDMXN market update from @HathornSabin here: https://t.co/gupJdU7WYT https://t.co/mMN8LFb5i5
  • EUR/USD has been weakening since the start of 2020 and the decline has accelerated this month. At some point there will be a correction but further losses are still likely as the year progresses. Get your $EURUSD market update from @MartinSEssex here: https://t.co/ieJUBNeAIf https://t.co/Dw4f7DQocg
  • The $AUD has risen in anticipation of a deal Washington and Beijing. But the Australia-China trade relationship has not suffered much and may even have been helped by China’s spat with the US. Get your market update from @DavidCottleFX here:https://t.co/An7h5X0Zcz https://t.co/Rn7mLbS1EF
Bank of England Leaves Rates Unchanged, Sterling (GBP) Remains Supported

Bank of England Leaves Rates Unchanged, Sterling (GBP) Remains Supported

2018-11-01 12:28:00
Nick Cawley, Analyst
Share:

Bank of England, Brexit and Sterling (GBP) Talking Points:

  • Bank of England leaves all monetary policy measures unchanged.
  • Quarterly Inflation Report highlights mixed inflation outlook.

The DailyFX Q4GBP Forecast is available to download.

Bank of England – Steady as She Goes

The UK central bank left all monetary policy settings unchanged Thursday – 9-0 vote and said that future interest rate hikes would be limited and gradual. The BoE said Q3 saw Q3 UK GDP at 0.6%, slowing to 0.3% in Q4 while the 2019 GDP forecast was cut to 1.7%, the same level as 2020 and 2021. In a slightly hawkish twist, the central bank added that the output gap has closed, and that the UK economy may run hot from late 2019. Wage projections rose to 2.75% in Q4 2018, 3.25% in Q4 2019 and 3.5% in Q4 2020.

Inflation projections were mixed with one-year at 2.10%, down from 2.15% at the last forecast, two-year inflation at 2.12%, up from 2.09% and three-year inflation at 2.03%, unchanged from the last forecast.

Sterling remained near its best levels of the day, aided by headlines that the EU and UK had reached a tentative agreement of financial services, a story that was later dismissed, but not out of hand.

GBP Price: Positive Brexit News Boosts Sterling, BoE Ahead

FTSE 250 Outperforms FTSE 100 on Brexit Developments

GBPUSD Daily Price Chart November 1, 2018

Sterling is up over 2 points against a slightly weaker US dollar over the last 24 hours and is back at levels last seen one week ago. The pair continue to trade below all three moving averages and will remain volatile as Brexit headlines dominate market thinking.

IG Client Sentimentdata show that retail investorsare 79.4% net-long GBPUSD, a bearish contrarian indicator. However, recent daily and weekly shifts in sentiment give us a strong GBPUSD bearish bias.

Bank of England Leaves Rates Unchanged, Sterling (GBP) Remains Supported

Traders may be interested in two of our trading guides – Traits of Successful Traders and Top Trading Lessons – while technical analysts are likely to be interested in our latest Elliott Wave Guide.

--- Written by Nick Cawley, Analyst

To contact Nick, email him at nicholas.cawley@ig.com

Follow Nick on Twitter @nickcawley1

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

DISCLOSURES

News & Analysis at your fingertips.