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
EUR/USD
Bullish
Oil - US Crude
Bullish
Wall Street
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
Gold
Bearish
GBP/USD
Bullish
USD/JPY
Bullish
More View more
Real Time News
  • There are three major forex trading sessions which comprise the 24-hour market: the London session, the US session and the Asian session. Learn about the characteristics of each session here: https://t.co/UVvf51HiVP https://t.co/FjIKDepY1B
  • #Copper Price Eyes 2020 High as China Data Indicates Robust Recovery #XCUUSD $CPER https://www.dailyfx.com/forex/market_alert/2020/10/01/Copper-Price-Eyes-2020-High-as-China-Data-Indicates-Robust-Recovery.html?CHID=9&QPID=917708&utm_source=Twitter&utm_medium=Moss&utm_campaign=twr https://t.co/77zvHBLsFC
  • Commodities Update: As of 02:00, these are your best and worst performers based on the London trading schedule: Silver: 1.25% Gold: 0.18% Oil - US Crude: -0.01% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/8Q2vaiaiCJ
  • A falling crude oil stockpile is underpinning crude oil prices. Crude inventory fell 1.98 million barrels last week, more than a 1.57 million forecast, according to EIA reports. WTI Crude oil price advanced more than 3% overnight. https://t.co/b1MEzEagen
  • Traders utilize varying time frames to speculate in the forex market. The two most common are long- and short-term-time frames which transmits through to trend and trigger charts. Learn more about time-frame analysis here: https://t.co/UalZ8cRSXB https://t.co/YgTLOf10s7
  • Forex Update: As of 02:00, these are your best and worst performers based on the London trading schedule: 🇨🇦CAD: 0.21% 🇦🇺AUD: 0.19% 🇳🇿NZD: 0.16% 🇬🇧GBP: 0.12% 🇨🇭CHF: 0.11% 🇯🇵JPY: -0.04% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/qL7nMxUXEP
  • #Market Snapshot Risk-on tilt to kick-off a fresh quarter of trade Haven-associated $USD and $JPY losing ground while $AUDUSD and $EURUSD trek higher #SP500 futures following #CrudeOil and the #ASX200 higher $Gold dipping back towards session-lows https://t.co/oJemFdRsdt
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 96.17%, while traders in Wall Street are at opposite extremes with 65.50%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/X3E4khU9qC
  • American Airlines say it is planning to furlough 19,000 employees after the government fails to pass its delayed fiscal stimulus follow up. United warned previously it could furlough 12,000 of its employees and Disney laid off 28,000 of its workers. #pandemic
  • GBP/USD was putting together a strong rally yesterday, but fizzled and put price closing in the bottom half of its daily range. Get your $GBPUSD technical analysis from @PaulRobinsonFX here:https://t.co/34HxGeksHU https://t.co/qMxdumej4w
GBP Slumps as CBI Warns Neither UK nor EU are Ready for No-Deal

GBP Slumps as CBI Warns Neither UK nor EU are Ready for No-Deal

2019-07-29 09:00:00
Daniela Sabin Hathorn, Analyst
Share:

GBP Talking Points:

  • CBI warns neither UK nor EU are ready for the disruption that a no-deal would cause
  • GBP faces further losses as Boris Johnson appoints hard-line Brexiteers as cabinet members to ensure Brexit is delivered by October 31
  • BoE expected to keep rates unchanged at 0.75% on Thursday as Brexit uncertainty continues

Increasing talks of a no-deal Brexit are not boding well for the pound as GBPUSD fell to 28-month lows and EURGBP surpassed the psychological 0.90 line. Since Johnson was appointed as PM last Tuesday the pound has fallen 1.5% against both the dollar and the euro, as he formed his cabinet with hard-line Brexiteer members, putting everyone on notice that he is serious about his “do or die” stance on Brexit.

GBP Q3 Trading Forecast

PRICE CHART: GBPUSD HEADING FOR MARCH 2017 LOWS (WEEKLY TIME-FRAME)

GBP Slumps as CBI Warns Neither UK nor EU are Ready for No-Deal

In recent news, Business Industry experts CBI have warned the government that neither the UK nor the EU are prepared to face the consequences of a no-deal Brexit, where almost every sector of the EU and UK would face disruption. The report suggests that despite UK businesses having spent billions of pounds already on contingency plans in case of a hard Brexit, the uncertainty and lack of clarity about dates and costs has left most of them feeling like there are not enough measures in place to counteract the disruption.

GBP Free Trading Guide

But instead of pressuring the PM to work together with the EU to achieve amendments to the current deal, Boris Johnson could use this information as leverage to continue his “deal or no-deal stance” if he believes that the EU will give in to pressure because they are also considered to be unprepared for a hard Brexit. But given the repeated warnings by EU commissioners that there is no possible amendment that can be made to the current withdrawal deal, it is unlikely that a new deal will be reached before the October 31 deadline.

Jean-Claude Juncker told Boris Johnson last week that the EU would analyse any proposals put forth by the UK as long as they were compatible with the terms set out in the agreement initially negotiated with Theresa May. The main point of divergence between both sides of the agreement is the Irish backstop, which would leave the UK abiding by EU rules unless another arrangement is found. Boris Johnson has said that the only way to avoid a no-deal Brexit would be to abolish the backstop from the agreement, which the EU has rejected.

The Bank of England will release its inflation report on Thursday ahead of its interest rate decision with expectations that rates will remain unchanged at 0.75% as MPC officials stick to their wait and see what happens with Brexit before adjusting its monetary policy rhetoric, given that both inflation and the jobs market are behaving well.

UK Trade Would be Left Under WTO Rules

If the UK crashed out of the EU on October 31 it would rely on WTO rules to govern its international trade, whereby the agricultural sector would be the one worse of as its products could face tariffs of up to 35%. Despite the government pledging to keep 87% of imports under a zero-tariff regime to counteract the immediate effects of a no-deal Brexit, some sectors of UK manufacturing would face becoming extinct.

Recommended Reading

Eurozone Debt Crisis: How to Trade Future Disasters – Martin Essex, MSTA, Analyst and Editor

KEY TRADING RESOURCES:

--- Written by Daniela Sabin Hathorn, Junior Analyst

To contact Daniela, email her at Daniela.Sabin@ig.com

Follow Daniela on Twitter @HathornSabin

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

DISCLOSURES