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. See our updated Privacy Policy here.

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
More View more
Real Time News
  • EUR/USD looking to close out the week above the key 1.16 level, now trading at 1.1603 $EURUSD https://t.co/1e9bQlNK8y
  • Free Bird was on the radio when I was getting my lunch. That is my 'an angle gets its wings' moment for the fall
  • Three Democrats urge House to pause overseas tax hike - Politico via BBG
  • Commodities Update: As of 18:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: -0.22% Silver: -0.85% Gold: -1.58% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/OvO7iACS4m
  • Chinese growth projections for 2022 and 2023 have been revised marginally lower in the recent International Monetary Fund (IMF) Economic Outlook. Get your market update from @CVecchioFX here:https://t.co/0fFdyeyJ5s https://t.co/eT3HDguQk6
  • Well that was quite clean #Gold #XAUUSD https://t.co/RunzG8NAuN
  • RT @KThomasDC: "To be honest with you, we’re probably not going to get $3.5 trillion this year," Biden says in Hartford. "We’re going to ge…
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 92.66%, while traders in GBP/JPY are at opposite extremes with 78.83%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/dAdWy7ADgZ
  • Indices Update: As of 18:00, these are your best and worst performers based on the London trading schedule: Wall Street: 1.04% US 500: 0.72% France 40: 0.09% FTSE 100: 0.04% Germany 30: 0.01% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/4jb65JZPjJ
  • We are now within 5% of record highs for Bitcoin on a 7.7% rally for the day thus far...
British Pound (GBP) Latest: Watch Out For The Valentine's Day Massacre

British Pound (GBP) Latest: Watch Out For The Valentine's Day Massacre

Martin Essex, MSTA, Analyst

GBP price, Brexit news and analysis:

  • UK Prime Minister Boris Johnson is expected to reshuffle his Cabinet on Thursday or Friday next week in a move that could have a major impact on the upcoming UK-EU post Brexit negotiations.
  • This could be an important time for Sterling traders, who need to weigh up carefully whether the new ministers are likely to take a hard line or a softer line in the talks.
  • Meanwhile, as GBP/USD trades sideways within a narrow range, a trade deal with Australia has emerged as a high priority for the UK Government.

GBP/USD outlook: Driven by politics

As GBP/USD meanders sideways, traders in the pair would do well to focus on the end of next week. UK Prime Minister Boris Johnson is due to reshuffle his senior ministers next Thursday or Friday – St Valentine’s Day – in a move that will send a strong signal on whether his team will take a hard line in the upcoming negotiations with the EU post Brexit or a relatively softer stance.

Inevitably, the reshuffle has already been dubbed the Valentine’s Day massacre by The Daily Telegraph newspaper, a reference to the 1929 killing in Chicago of seven gangsters. This time, the blood-letting is likely to be metaphorical rather than actual but it could still have a major impact on Sterling as traders weigh up whether Johnson’s new Cabinet is more or less likely to reach a negotiated trade deal that would be broadly positive for GBP.

For now, GBP/USD remains close to the 1.30 level, where it has traded since Monday’s slide, and has been largely unaffected by the hopes of a coronavirus vaccine and news that China will halve its tariffs on some US imports that have affected other markets.

GBP/USD Price Chart, One-Hour Timeframe (January 31 – February 6, 2020)

Latest GBP/USD price chart.

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

Meanwhile, it has emerged that Australia is near the top of the list for a post Brexit trade deal with the UK. “We have a trade relationship already worth £17 billion but we have the potential to do so much more,” UK Foreign Secretary Dominic Raab told reporters in Canberra. “Australia hopefully will be part of that first wave of high priority deals that we are pursuing,” he added after a meeting with Australian Foreign Minister Marise Payne.

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