GBP Price Outlook: Driven by Brexit and Fed Chair Powell - Webinar
GBPUSD Price, Chart and Analysis:
- Brexit news may increase as PM Johnson meets Angela Merkel and Emmanuel Macron.
- US interest rate discussion will drive markets later in the week.
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Brexit and Fed Chair Jerome Powell
Sterling is opening the week on the backfoot as Brexit no-deal talk continues, along with increased rhetoric from the Remain supporters that they will stop PM Boris Johnson from pushing a no-deal Brexit through without Parliamentary consent. On Sunday, one the main UK newspapers published confidential documents – Operation Yellowhammer – that warned of food, fuel and medicine shortages in the case of a no-deal Brexit.
With no data to look forward to, the main events of the week are the German/Eurozone PMIs, with further weakness expected, and the FOMC minutes on Wednesday and Fed chair Jerome Powell’s speech at the Jackson Hole Symposium on Friday.
GBP/USD Price Chart (January – August 19, 2019)
Retail traders are 73.2% net-long GBPUSD according to the latest IG Client Sentiment Data, a bearish contrarian indicator. However recent daily and weekly positional changes give us a bullish contrarian biaseven though traders remain net-long.
What is your view on Sterling (GBPUSD) – bullish or bearish? You can let us know via the form at the end of this piece or you can contact the author at email@example.com or via Twitter @nickcawley1.
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