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.

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
EUR/USD
Bearish
Oil - US Crude
Mixed
Wall Street
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
Gold
Mixed
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
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
  • What suits your style of trading stocks or commodities? Find out what are the differences in these two markets here: https://t.co/BnA07cMV0s https://t.co/453MLny2lu
  • The haven-linked US Dollar may be in a position to benefit in the short-run as economic recovery bets support longer-dated Treasury yields, making them more competitive with stocks. Get your market update from @ddubrovskyFX here: https://t.co/BickxlcuZi https://t.co/OdARp4Z1mh
  • The Dow Jones and Nasdaq 100 look to be on diverging technical paths as volatility spikes. Meanwhile, the S&P 500 teeters on support as it splits the difference between its sister indices. Get your market update from @PeterHanksFX here: https://t.co/0gULgIN2kw https://t.co/dzuxyjkXmx
  • What's the difference between leading and lagging indicators? Find out from here: https://t.co/vGx8HCagF5 https://t.co/yTYG7ote3R
  • The reflation trade is helping to push the oil-linked Canadian Dollar higher as the post-Covid economic outlook clears. The Loonie is reliant on the global economy’s recovery. Get your market update from @FxWestwater here: https://t.co/CYUiH0PCca https://t.co/my6clW7pxY
  • Struggling to define key levels? Floor-Trader Pivots assist traders in identifying areas in a chart where price is likely to approach and can be used to set appropriate targets, while effectively managing risk. Learn how to use this indicator here: https://t.co/Ye4m1FMKUW https://t.co/q8Ds7wYrKA
  • 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/qtAmyhFU9A
  • Get your snapshot update of the of relative currency strength and exchange status from around the globe here: https://t.co/H19vRDCpUJ https://t.co/S74APOiQ3y
  • Two of the main Euro-pairs, $EURUSD and $EURGBP, are being driven by very different drivers. Get your market update from @nickcawley1 here: https://t.co/Vd32Y6HKEr https://t.co/Lgb5z5V1Xa
  • Recessions can devastate the economy and disrupt the fortunes of individuals, businesses, and investors. But economic decline in the business cycle is inevitable, and your trading can be defined by how you respond to crisis. learn how to prepare here: https://t.co/e4CnobJCss https://t.co/9uPXNvDBS5
GBP Price Falls as Bank of England Leaves UK Interest Rates Unchanged

GBP Price Falls as Bank of England Leaves UK Interest Rates Unchanged

Martin Essex, MSTA, Analyst

GBP price, news and analysis:

  • The Bank of England has kept its benchmark Bank Rate at 0.75% and its bond-buying programs unchanged, as expected.
  • However, the GBP price eased back as the UK central bank said Brexit uncertainties are intensifying.

GBP price, UK interest rates and Brexit

The Bank of England’s monetary policy committee has voted unanimously, 9-0, to keep its benchmark Bank Rate unchanged at 0.75%, its purchases of UK gilts (government bonds) at £435 billion and its buying of corporate bonds at £10 billion. The decisions were all in line with forecasts.

However, GBPUSD dipped back below the 1.27 handle as the UK central bank said that Brexit uncertainty has “intensified considerably” over the last month and that falling oil prices are likely to push inflation below its 2% percent target soon.

Minutes from the MPC meeting showed growing unease about the turmoil surrounding the UK’s divorce from the EU, due on March 29 next year, and it was those comments that hit the Pound.

GBPUSD Price Chart, 5-Minute Timeframe (December 19-20, 2018)

Latest GBPUSD price chart.

Chart by IG (You can click on it for a larger image)

Bank of England forecasts

The MPC forecast that UK inflation will likely drop below 2% in coming months because of falls in oil prices, to around 1.75% in January. It reiterated that an ongoing tightening of monetary policy remains appropriate but lowered its forecast of fourth-quarter UK GDP growth to 0.2% quarter/quarter from 0.3%.

It added that growth could remain at 0.2% in the first quarter of next year and said downside risks to global growth have increased.

UK data positive

In the meantime, UK economic data released this week have been broadly positive. Retail sales figures for November, published this session, showed sales well above expectations – thanks to Black Friday buying – despite concerns about a possible slowdown in pre-Christmas business. Inflation numbers, published yesterday, showed another fall year/year and public sector borrowing data, due tomorrow, are predicted to show declines.

Normally, that would be positive for the GBP price but the figures are currently having less impact than usual because of concerns about a possible hard Brexit when the UK leaves the EU on March 29 next year.

More to read:

GBPUSD Price Edging Ahead Despite Growing Risk of No-Deal Brexit

Brexit Timeline - The Path Ahead

Resources to help you trade the forex markets:

Whether you are a new or an experienced trader, at DailyFX we have many resources to help you:

--- Written by Martin Essex, Analyst and Editor

Feel free to contact me via the comments section below, via email at martin.essex@ig.com or on Twitter @MartinSEssex

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

DISCLOSURES