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
Mixed
Oil - US Crude
Bearish
Wall Street
Mixed
Gold
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
GBP/USD
Mixed
USD/JPY
Bullish
More View more
Real Time News
  • Commodities Update: As of 14:00, these are your best and worst performers based on the London trading schedule: Gold: -0.19% Oil - US Crude: -0.42% Silver: -0.92% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/xwaTuPMuuU
  • DAX poised to make a run at new record highs soon. CAC eying a gap-fill from the massive Feb 2020 decline. Get your #DAX market update from @PaulRobinsonFX here:https://t.co/fi4OYwoY7T https://t.co/HL8gkW4i8w
  • $AUDUSD is rebounding today, currently trading back above the 0.7800 level. The pair hit a nearly three week low into the end of February, falling as low as 0.7700. $AUD $USD https://t.co/xD6HG17sos
  • Indices Update: As of 14:00, these are your best and worst performers based on the London trading schedule: FTSE 100: 0.89% Germany 30: 0.68% France 40: 0.57% US 500: 0.08% Wall Street: 0.03% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/Gjrddj7wsN
  • The 1965-2000 support zone is key on $EURUSD from the weekly, working a bull flag with support around prior resistance. #NFP on Friday https://t.co/GBnw4F18Ju https://t.co/Y8W2hcNSQF
  • - OPEC+ panel sees stockpiles below 5yr average by August in base case - Sees stockpiles decline even if 2.4mln barrels per day are revived by June #OPEC #OOTT $OIL
  • - OPEC Sec-Gen says oil markets are improving, headwinds are abating - OPEC sees oil stocks dropping by about 400mln barrels in 2021 in latest supply and demand outlook #OPEC #OOTT $OIL
  • Another sign of speculative indulgence: not only is Google search surging worldwide for 'day trading', but 'penny stocks' interest is far outstripping anything in Google's data back to 2004: https://t.co/Y0huNWH3yA
  • OPEC President Azevedo: - Oil prices are relatively stable - There is a certain balance between supply and demand - Vaccinations set to increase demand further - New virus waves are still a threat - Pandemic and virus variants could put downward pressure on production #OOTT $OIL
  • $USDJPY is continuing to trade at multi-month highs today, currently trading around the 106.90 level for the first time since August. $USD $JPY https://t.co/lYaK01mCcx
British Pound Outlook Bullish Ahead of BBC Debate, UK Election

British Pound Outlook Bullish Ahead of BBC Debate, UK Election

Dimitri Zabelin, Analyst

UK Election, British Pound, GBP Forecast– TALKING POINTS

  • British Pound may rise on BBC debate between Boris Johnson, Jeremy Corbyn
  • Recent polls have put Conservatives ahead of Labour and given a boost to GBP
  • Markets are bracing for the UK general election as Brexit deadline approaches

Learn how to use politicalrisk analysis in your trading strategy!

The British Pound may rise following the BBC debate between UK Prime Minister Boris Johnson and Leader of the Opposition and head of the Labour Party Jeremy Corbyn. Recent polls showing a widening gap between the Conservatives and their left-wing counterparts has led to a rally in the British Pound. The belief is that if Mr. Johnson is able to secure a majority in parliament, it reduces the probability of a no-deal Brexit.

Chart showing UK Election Polls

Source: The Guardian

Both party leaders will be going head-to-head on The Prime Ministerial Debate on BBC One on Friday at 8:30 PM local time. This follows the debate both parties held on November 29 where after-show polls showed 51 percent of viewers believed Mr. Johnson outperformed his Labour counterpart. Favorable polls for the Tories have frequently resulted in a stronger Pound as it reduces the chance of the election birthing a split legislature.

British Pound Index – Daily Chart

Chart showing British Pound Index

GBP index created using TradingView

Using a GBP index against a currency basket composed of the Euro, Japanese Yen, US Dollar and Australian Dollar shows that the British Pound has risen almost two percent in three days. The boost has come from optimism about the election and the ability and probability of Mr. Johnson securing a parliamentary majority. Sterling’s fickle nature has been in large part derived from the political oscillations in the UK:

"Performing technical analysis on a pair whose counter currency is linked to a fundamentally volatile environment makes it unusually difficult and unpredictable. There is no telling when a sudden political development will cross the headlines and what the respective magnitude of the price swing will be".

Looking ahead, traders will be closely watching the debate and post-match polls to gauge the degree of popularity Mr. Johnson was able to acquire following the head-to-head interview. Given the current trajectory of polls, it is possible the Prime Minister’s performance will continue to fuel GBP’s gains heading into the election next week on December 12.

BRITISH POUND TRADING RESOURCES

--- Written by Dimitri Zabelin, Jr Currency Analyst for DailyFX.com

To contact Dimitri, use the comments section below or @ZabelinDimitrion Twitter

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

DISCLOSURES