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
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
Oil - US Crude
More View more
Real Time News
  • China-US trade talks made breakthrough last week with both sides showing a strong will to reach a final deal - Global Times
  • RT @HuXijin_GT: Based on what I know, China-US trade talks made breakthrough last week and the two sides have the strong will to reach a fi…
  • If a #Brexit deal is reached, Sterling will rally further, while in the equity space, the domestically-focused FTSE 250 should outperform the export-focused #FTSE 100. Get your market update from @nickcawley1 here: https://t.co/nfgon4la8s https://t.co/IEBfQ1wYx9
  • Indices Update: As of 13:00, these are your best and worst performers based on the London trading schedule: US 500: -0.13% Wall Street: -0.21% Germany 30: -0.32% France 40: -0.51% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/Kh9F9IPP6d
  • RT @carlquintanilla: Morgan Stanley thinks the next few weeks/months could “resemble what we saw last December, albeit less dramatic given…
  • RT @onlyyoontv: Chatted China’s take on DC trade talks and, @SullyCNBC— as I mentioned, Tencent has started broadcasting @NBA games again!…
  • BoE's Cunliffe says Brexit uncertainty has weighed on investment, adds that even if we get a Brexit transition deal, still do not know what the final trading relationship will be $GBP
  • .@DailyFX has just launched our new Worldwide Commodities Infographic. Be sure to check it out here to track major geopolitical players as well as live market prices -> https://www.dailyfx.com/research/global-commodities https://t.co/gUmzIfJReN
  • RT @onlyyoontv: When asked about next steps, @stevenmnuchin1 tells @CNBC: 1) deputy level calls this week 2) top negotiators’ (Lighthizer,…
GBPUSD Price Slips Lower as UK Inflation Falls to a Near Three-Year Low

GBPUSD Price Slips Lower as UK Inflation Falls to a Near Three-Year Low

2019-09-18 09:30:00
Nick Cawley, Analyst

  • UK inflation hits the lowest level since late 2016.
  • GBPUSD drifts lower but short-term direction still driven by Brexit.

Q3 2019 GBP Forecast and Top Trading Opportunities

Sterling (GBP) Slips Lower After Inflation Data, BoE Up Next

Bank of England governor Mark Carney will have noted with interest the latest fall in UK inflation ahead of tomorrow’s BoE MPC decision, with UK prices rising at their slowest rate since late 2016. The ONS report highlighted that the fall ‘was mainly driven by a decrease in computer game prices, plus clothing prices rising by less than last year after the end of the summer sales.’ The latest data will be welcome news for UK consumers, with real wages now rising between 2% and 2.2% in August.

GBPUSD Price Slips Lower as UK Inflation Falls to a Near Three-Year Low

Thursday’s BoE monetary policy decision now comes into view with the central bank expected to leave all monetary policy settings unchanged. Governor Mark Carney will likely mention the latest downturn in inflation, and its expected short-term path, but will again reiterate that the BoE will remain on hold until Brexit is resolved, one way or another.

Live Data Coverage: BoE Rate Decision From 10:45 GMT - Webinar

For all economic and data releases see the DailyFX Economic Calendar

GBPUSD has dipped post-release to 1.2455 but the recent uptrend, defined by lower highs from the September 3 low, remains in place. Support remains around 1.2382, made up from a cluster of recent highs and lows, while resistance is pegged between 1.2525 and 1.2582 in the short-term. GBPUSD price action will be driven by the any news from the ongoing UK Supreme Court’s ruling on PM Johnson’s recent prorogation of Parliament, and Brexit talk from the EU, rather than any commentary from the Bank of England tomorrow.

In addition, the Fed is fully expected to cut US interest rates by 0.25% later today, with markets hoping that Fed Chair Jerome Powell’s subsequent commentary will give a steer towards the Fed’s thinking on the state of the US economy.

Live Data Coverage: FOMC Rate Decision From 17:45 GMT - Webinar

GBPUSD Daily Price Chart (March - September 18, 2019)

GBPUSD Price Slips Lower as UK Inflation Falls to a Near Three-Year Low

Brexit Glossary – Brexit Jargon and Terms Explained

IG Client Sentiment data show that of retail traders are 63.0% net-long of GBPUSD, a bearish contrarian indicator. See how daily and weekly positional changes can change client sentiment.

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.

What is your view on Sterling and Brexit? You can let us know via the form at the end of this piece or you can contact the author at nicholas.cawley@ig.comor via Twitter @nickcawley1.

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


News & Analysis at your fingertips.