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
Wall Street
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
More View more
Real Time News
  • The S&P 500 finds temporary support in the 100-day moving average, with the index down over 2.2% on the day $SPX $SPY $ES https://t.co/LYcRAINMPK
  • A rough start to the week with the cryptocurrency market a sea of red with losses on either side of -10% a common sight. Get your $btc market update from @nickcawley1 here:https://t.co/AUfuM9KIX6 https://t.co/rQd27X1QxY
  • RT @BrendanFaganFx: 77 counterparties take $1.224 trillion at Fed's fixed-rate reverse repo $USD $DXY https://t.co/rH8dZtdbS9
  • Federal Reserve reports reverse repo facility usages of a record $1.224 tln among 77 counterpartiess
  • US Vice President Kamala Harris is expected to meet with UK Prime Minister Boris Johnson on Tuesday
  • Global 10-Year Government Bond Yields: US - 1.1296 (-6.6bps) UK - 0.792 (-5.2) CA - 1.212 (-6.8) GE - 0.322 (-4.0) FR - 0.02 (-3.6) JP - 0.05 (+1.0) AU - 1.250 (-8.0) CN - 2.893 (-0.0)
  • The South African rand has continued its depreciation against the U.S. dollar this week after the Evergrande default probability remains. Get your $USDZAR market update from @WVenketas here:https://t.co/24dVHrkMDG https://t.co/aNNU5qnha6
  • What is more concerning than just US equities down or global equities being down is that 'risk' across the board is under serious pressure. The more intense and persistent this trend, the greater the risk it turns self-sustaining https://t.co/KPblFpeaqf
  • It's rare event where the buy-and-hold, long volatility crowd do a victory lap and say their formal 'I knew it'. The $VXX short-term volatility ETF is up sharply on heavy volume. One of my 'early warning' signals https://t.co/5XqfJJTqR3
  • Coinbase will drop its plans to launch its crypto lending program that was under regulatory scrutiny
British Pound (GBP), FTSE Latest: London Stocks Higher but Sterling Flat

British Pound (GBP), FTSE Latest: London Stocks Higher but Sterling Flat

Martin Essex, MSTA, Analyst

GBP price, FTSE 100 news and analysis:

  • The FTSE 100 index of leading London-listed stocks is modestly higher in early trading while GBP/USD is little changed.
  • Sterling’s stability comes despite markets fully pricing in a quarter-point cut in UK interest rates by the Bank of England on March 26.

GBP/USD stable as markets wait for interest rate cut

A quarter-point cut in UK interest rates by the Bank of England on March 26 is now fully priced in to the markets, benefiting the FTSE 100 index of leading London-listed stocks but leaving GBP/USD little changed. According to the overnight index swaps market, there is now a 100% likelihood of a reduction in Bank Rate to 0.5% from the current 0.75% in the wake of the Federal Reserve’s emergency cut in the Federal Funds rate Tuesday to counter the economic impact of the coronavirus.

The prospect of a rate cut has led to a drop in the yield on the two-year UK Government bond to its lowest since September 2017, while the 10-year gilt yield has fallen to its lowest since September last year. This might usually be expected to weaken the Pound so its relative stability is a positive signal.

GBP/USD Price Chart, One-Hour Timeframe (February 28 – March 4, 2020)

Latest GBP/USD price chart.

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

Sterling may also be benefiting from a poll of foreign exchange strategists by the Reuters news agency predicting a 5% climb in GBP/USD over the next 12 months, although the poll was conducted before the emergency Fed rate cut. Behind this predicted advance are hopes that the UK and the EU will agree on a post-Brexit trade deal by the end of 2020, albeit perhaps a bare-bones agreement.

Meanwhile, the FTSE 100 index is benefiting from hopes of lower UK interest rates that would be expected to lower businesses’ borrowing costs.

FTSE 100 Price Chart, One-Hour Timeframe (February 28 – March 4, 2020)

Latest FTSE 100 price chart.

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

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