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.

Free Trading Guides
EUR/USD
Mixed
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
Oil - US Crude
Mixed
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
Wall Street
Mixed
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
Gold
Bearish
GBP/USD
Mixed
USD/JPY
Mixed
More View more
Real Time News
  • Earnings season occurs a few weeks after the final month of a financial quarter and provides unique opportunities for equity traders. What are some key points you should keep in mind as a trader? Find out from @PeterHanksFX here: https://t.co/JDEOEDPOq6 https://t.co/utN1PfT8cM
  • California Governor says virus cases are at 16,967, with 2,714 hospitalized - BBG
  • US Treasury Yields: 2-Year: 0.252% 3-Year: 0.339% 5-Year: 0.467% 7-Year: 0.650% 10-Year: 0.763% 30-Year: 1.362% $TNX
  • both US equities and Gold rallying after those abysmal FOMC minutes... all members noting that the economy had 'deteriorated sharply' as of March 15 $SPX inching closer to that four-week-high $ES $SPY https://t.co/hDWJzdDhth https://t.co/VqfCo4kEiz
  • Three years doesn’t sound like a ‘V-shape recovery’ to me https://t.co/rzOTCXhf02
  • RT @MKTWeconomics: Another 6 million workers likely filed jobless claims in early April as record layoffs mount https://t.co/q6E9sLKRlY htt…
  • RT @ReutersBiz: Fed's Barkin: coronavirus blow to U.S. economy will be deep https://t.co/5mWzwpkXrR https://t.co/y9kN6nnODo
  • RT @business: The Fed will launch a lending program this week for mid-sized businesses hurt by the coronavirus, Treasury Secretary Steven M…
  • Gold Price Outlook: XAUUSD Prices Coil Ahead of the Next Big Break https://www.dailyfx.com/forex/technical/home/analysis/xau-usd/2020/04/08/Gold-Price-Outlook-XAU-USD-JS-Prices-Coil-Ahead-of-Next-Big-Break-Gold-to-US-Dollar-Price.html https://t.co/0wbwyv84Cb
  • An update on the $SPX with the Fed's balance sheet overlaid: https://t.co/tKyBoTjQTQ
British Pound (GBP) Outlook Brightens As UK Budget Nears

British Pound (GBP) Outlook Brightens As UK Budget Nears

2020-03-05 09:00:00
Martin Essex, MSTA, Analyst
Share:

GBP price, FTSE news and analysis:

  • The UK Budget is due next Wednesday and will likely help both GBP/USD and the FTSE 100 index of leading London stocks.
  • Political analysts are forecasting an easing of UK fiscal policy through both tax cuts and extra spending.
  • That should outweigh a cut in UK interest rates expected later this month that has already been fully priced in.

GBP/USD Outlook Brightens

GBP/USD is well placed to extend this week’s rally as attention turns to the UK Budget on March 11. The Budget is an important set-piece event in the UK and the new Chancellor of the Exchequer, Rishi Sunak, will likely follow up on the Government’s election pledge to ease fiscal policy through tax cuts and higher Government spending.

This should outweigh the prospect of a cut in UK Bank Rate on March 26 to 0.5% from the current 0.75%, a reduction already fully priced in to the overnight index swaps market. As a result, the current trend higher could take GBP/USD back towards the 1.30 level after a recent low of 1.2726 in late February.

GBP/USD Price Chart, Daily Timeframe (December 5, 2019 – March 5, 2020)

Latest GBP/USD price chart.

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

GBP/USD MIXED
Data provided by
of clients are net long. of clients are net short.
Change in Longs Shorts OI
Daily 1% 10% 5%
Weekly 9% -1% 4%
Learn how to use Sentiment in your trading strategy
Get My Guide

Any adverse reaction to a rate cut has already been offset by rate reductions in the US and elsewhere, and GBP/USD could also be strengthened by a potentially weaker US Dollar as concerns about the coronavirus ease, reducing flows into safe havens.

As for the FTSE 100 index of leading London-listed stocks, that should also benefit from the Budget, with extra Government spending likely to help businesses with Government contracts. Note the need for easier fiscal policy has increased as politicians worry that the coronavirus outbreak could damage global demand.

FTSE 100 Price Chart, Daily Timeframe (December 5, 2019 – March 5, 2020)

Latest FTSE 100 price chart.

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

Equities Forecast
Equities Forecast
Recommended by Martin Essex, MSTA
Get Your Free Equities Forecast
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

News & Analysis at your fingertips.