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
Bullish
Oil - US Crude
Mixed
Wall Street
Mixed
Gold
Bullish
GBP/USD
Bearish
USD/JPY
Mixed
More View more
Real Time News
  • 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/sqeRL7Rf7u
  • Cyclical and non-cyclical stocks can help diversify a trader’s equity portfolio. Get your guide to understanding these stocks here: https://t.co/h7BKTd2J8N https://t.co/ukOW0dWJxf
  • Beautifully put. https://t.co/0fBsmUH6Pb
  • Gold prices could claw back lost ground ahead of the non-farm payrolls report for November, buoyed by a dovish FOMC, falling real yields and rising inflation expectations. Get your $XAUUSD market update from @DanielGMoss here:https://t.co/3mqut0yQIQ https://t.co/nfyycibwKM
  • 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/UWnLJHVPN4
  • Rather than focusing on earning a specific number of pips per day, traders need to focus on what can be controlled. In trading terms this relates to following a strategy perfectly, with no emotion or hesitation. Learn more here: https://t.co/6ZH026QLRN https://t.co/JJIyKh8r1l
  • That if you’re offended by what someone says on Twitter and that ruins your day, you live an extremely lucky life to be able to have that be your biggest problem for the day. https://t.co/H9KQjR3ViK
  • Myth or fact? One thing is for sure, there are a lot of misconceptions about trading. Knowing the difference between common trading myths and the reality is essential to long-term success. Find out about these 'myths' here: https://t.co/EDvQdHfIPm https://t.co/tl54v6sKkX
  • Moving averages are extremely popular due to its easy-to-use nature and multitude of uses when trading. What are some popular moving averages and how can you use them? Find out: https://t.co/ik0wQ3MLGE https://t.co/heAYoTMDeR
  • MACD who? The Moving Average Convergence Divergence (MACD) is a technical indicator which simply measures the relationship of exponential moving averages (EMA). Find out how you can incorporate MACD into your trading strategy here:https://t.co/ZNs4Qi8ieG https://t.co/UqZBBPZiOl
British Pound (GBP), FTSE 100 Latest: China Stimulus Brings Markets Hope

British Pound (GBP), FTSE 100 Latest: China Stimulus Brings Markets Hope

2020-02-05 09:00:00
Martin Essex, MSTA, Analyst
Share:

GBP price, FTSE 100 news and analysis:

  • GBP/USD is modestly firmer in early European trading as Chinese efforts to boost its economy to counter the impact of the coronavirus help steady nerves.
  • Moreover, the FTSE 100 is rallying even though a possible further Sterling rally would harm the prospects of the many internationally-focused companies in the index.

GBP/USD, FTSE 100 sentiment could improve further

With no new Brexit news to focus on, GBP/USD is steadying and could rise further near-term as the People’s Bank of China continues to inject large sums of money into the Chinese financial system to help cushion any economic weakness caused by the coronavirus outbreak.

While Sterling is not a “risk on” currency to the same extent as the Australian Dollar, it too could benefit further on reports that the PBOC could lower interest rates and cut banks’ reserve ratio requirements in coming weeks should its current measures prove insufficient.

GBP/USD Price Chart, 30-Minute Timeframe (January 31 – February 5, 2020)

Latest GBP/USD price chart.

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

GBP/USD BEARISH
Data provided by
of clients are net long. of clients are net short.
Change in Longs Shorts OI
Daily -10% -13% -12%
Weekly 13% -6% 0%
What does it mean for price action?
Get My Guide

Moreover, the traditional inverse correlation between GBP and the FTSE 100 index of leading London-listed stocks has broken down for now. Generally, a rising Pound damages the prospects of the many internationally-focused companies, such as banks and miners, that are included in the index.

For now, though, the improvement in market sentiment is lifting the FTSE 100 too and, like Sterling, its near-term prospects have brightened on hopes that China’s monetary measures will help offset any damage to the global economy caused by the virus.

FTSE 100 Price Chart, 30-Minute Timeframe (January 31 – February 5, 2020)

Latest FTSE 100 price chart.

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

How to Use IG Client Sentiment in Your Trading
How to Use IG Client Sentiment in Your Trading
Recommended by Martin Essex, MSTA
Improve your trading with IG Client Sentiment Data
Get My Guide

We look at Sterling regularly in the DailyFX Trading Global Markets Decoded podcasts that you can find here on Apple or wherever you go for your podcasts

--- Written by Martin Essex, Analyst and Editor

Feel free to contact me via the comments section below

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

DISCLOSURES