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
  • Commodities Update: As of 20:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: 0.20% Silver: -0.83% Gold: -1.60% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/iKG3lJuWba
  • RT @EricBalchunas: The deed is done. Home free… $BITO https://t.co/Qf3U9quSfy
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 92.71%, while traders in GBP/JPY are at opposite extremes with 79.19%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/OyMnOH8EOa
  • The past few weeks we have regularly mentioned that the SEC is likely to look kindly upon the few Bitcoin futures-based ETFs applications in its pending tray. Get your $btc market update from @nickcawley1 here:https://t.co/1XBRPL8IlD https://t.co/IKr70qAcDn
  • Gold prices are poised for a breakout in the days ahead as XAU/USD contracts into longer-term uptrend support. Get your weekly gold forecast from @MBForex here: https://t.co/nqPwZOLgEk https://t.co/rTWVRs1oJd
  • Indices Update: As of 20:00, these are your best and worst performers based on the London trading schedule: Wall Street: 1.11% US 500: 0.77% France 40: 0.18% FTSE 100: 0.10% Germany 30: 0.07% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/LMuIXZ9D6X
  • The main focus in the FX space has been the Japanese Yen which continues to go up in smoke across the board. Get your market update from @JMcQueenFX here:https://t.co/2G4zEG3B4t https://t.co/SSdJODy7dW
  • 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
British Pound (GBP) Latest: GBP/USD Eyes US NFPS; Post-Brexit Tariffs to be Slashed?

British Pound (GBP) Latest: GBP/USD Eyes US NFPS; Post-Brexit Tariffs to be Slashed?

Nick Cawley, Strategist

EU-UK Trade Talks and British Pound (GBP) Price, Chart and Analysis:

  • US Labor Report will dominate trading action going into the close of the week.
  • Reports that the UK will slash a wide range of tariffs on imports.

GBP/USD – Touching a Fresh Low for the Year

GBP/USD is under further pressure Friday and trades just off its low for the year. While Sterling as a currency is weak, the US dollar is very strong this week, adding fuel to the move lower. Later in the session the latest US Non-Farm Labor Report – 13:30 GMT – will drive the next move in the greenback and it will garner extra interest today after Wednesday’s bumper ADP jobs numbers. The private sector report showed 291k new jobs created, compared to expectations of 160k, the highest print in nearly five years.

NFP and Forex – What is NFP and How to Trade It?

The US dollar basket (DXY) traded at levels last seen in mid-October Thursday and it may be that markets have already priced-in a better-than-expected NFP release today.

Live Coverage of US NFPs From 13:15 GMT Today

US Dollar Basket (DXY) Daily Price Chart (August – February 7, 2020)

US Dollar rallying higher

Post-Brexit Tariffs May Be Cut

A story in The Daily Telegraph today explains how the Government may well slash a wide range of tariffs as the country looks to set its own trade policy for nearly 5 decades. Scrapping of so-called ‘nuisance tariffs’ such as those under 2.5% would help households save around £300 a year. The plan, outlined by International Trade Secretary Liz Truss, is part of a plan by the UK to free itself from EU rules. Ms Truss said, “The UK has left the EU and it is time for us to look forward to our future as an independent, global champion of free trade. It is vitally important that we now move away from the complex tariff schedule imposed on us by the European Union”.

GBPUSD now trades in a support zone between 1.2905 and 1.2954 with the lower bound under pressure. A break below would put cable back at pre-general election levels and heading towards secondary support around 1.2815. The chart shows the pair trading below the 20- and 5-day moving averages, but above the 200-dma, while the CCI indicator suggests the pair are currently oversold.

GBP/USD Daily Price Chart (August 2019 – February 7, 2020)

GBPUSD falling lower

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 (GBP) – bullish or bearish?? You can let us know via the form at the end of this piece or you can contact the author via Twitter @nickcawley1.

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

DISCLOSURES