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
Oil - US Crude
Mixed
Wall Street
Bearish
Gold
Mixed
GBP/USD
Mixed
USD/JPY
Bearish
More View more
Real Time News
  • (#ASEAN Fundy Weekly) The US #Dollar appears to be back on the offensive against ASEAN FX such as the Singapore Dollar and Malaysian #Ringgit. The Philippine Peso gained. What does #USD face from here? $USDSGD $USDPHP $USDMYR $USDIDR - https://www.dailyfx.com/forex/fundamental/article/special_report/2020/04/06/US-Dollar-Back-on-the-Offensive-USDSGD-USDPHP-USDMYR-USDIDR.html?CHID=9&QPID=917702&utm_source=Twitter&utm_medium=Dubrovsky&utm_campaign=twr https://t.co/8CKptvL6Uz
  • This thread 😂 https://t.co/9nek6fXA1t
  • This is the best one of the thread. https://t.co/dXGZZVzww7
  • Negative yielding government bonds – What are they telling us? Find out from @nickcawley1 here: https://t.co/F6JuhmrvPT https://t.co/ZzbHAVT6RE
  • LIVE IN 30 MIN: In this session, Currency Analyst @ZabelinDimitri will analyze the cross-asset impact of geopolitical risks affecting markets in the week ahead. https://www.dailyfx.com/webinars/146770987
  • Join @ZabelinDimitri 's #webinar at 11:30 PM ET/3:30 AM GMT to find out how geopolitical risk will affect the markets in the week ahead. Register here: https://t.co/hsULxMNOtM https://t.co/jdzRaFJnaa
  • Commodities Update: As of 02:00, these are your best and worst performers based on the London trading schedule: Silver: 0.20% Gold: 0.06% Oil - US Crude: -3.63% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/GqKRXlbHQc
  • Forex Update: As of 02:00, these are your best and worst performers based on the London trading schedule: 🇦🇺AUD: 0.42% 🇳🇿NZD: 0.30% 🇪🇺EUR: 0.07% 🇨🇭CHF: -0.04% 🇬🇧GBP: -0.24% 🇯🇵JPY: -0.38% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/6yhR5FFtZw
  • LIVE NOW: Join DailyFX Senior Strategist @IlyaSpivak LIVE as he discusses the outlook for the financial markets in the week ahead! https://www.dailyfx.com/webinars/889679267
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 95.10%, while traders in US 500 are at opposite extremes with 68.84%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/gvtwxfEvLB
British Pound (GBP) Latest: FTSE 100 Slumps, Sterling Rally Continues

British Pound (GBP) Latest: FTSE 100 Slumps, Sterling Rally Continues

2020-03-06 08:58:00
Nick Cawley, Analyst
Share:

Sterling (GBP) and FTSE 100 Prices and Analysis:

  • Massive risk-off move continues as coronavirus headlines drive the market.
  • Sterling continues to grind higher and looks to re-take GBP/USD 1.3000.

FTSE 100 Sell-Off Continues Ahead of US Jobs Report

The FTSE 100 continues its recent heavy sell-off which has seen the index fall around 1000 points from the recent high made on January 20 this year. Global financial markets have been roiled by the ongoing spread of the coronavirus and the effect that it is having on global trade. Recent central bank action to add liquidity to the markets has done little to boost investor confidence and most global equity indices are only a handful of percentage points away from being in full-blown bear market territory. The FTSE 100 has not been immune to the heavy sell-off and this week hit its lowest level since July 2016. Next week the Chancellor of the Exchequer will present his first Budget and expectations of a hefty fiscal boost for the UK economy are high.

FTSE 100 Daily Price Chart (January 2019 – March 6, 2020)

FTSE 100 plunging
GBP Forecast
GBP Forecast
Recommended by Nick Cawley
Download our Q1 Sterling Forecast
Get My Guide

GBP/USD Looks to Re-Test 1.3000 as the US Dollar Slumps

Cable has benefitted all week from a weakening US dollar and has added around 250 pips over the week in one-way trade.The pair have made a series of higher lows all week, broken through the 20-dma and now eye the 50-dma currently trading at 1.2990. Sterling is seemingly supported by a central bank who are unlikely to cut interest rates ahead of the next MPC meeting on March 26. The central is fully expected to cut rates by 0.25% at this meeting, but Sterling is waiting to see the outcome of next week’s Budget before making any further moves.

The US Non-Farm Payroll release at 13:30 GMT today is expected to add further volatility into a market that is struggling with whip-saw moves and sentiment shifts.

DailyFX analyst Justin McQueen will cover the US Jobs Report Live from 13:15 GMT

GBP/USD MIXED
Data provided by
of clients are net long. of clients are net short.
Change in Longs Shorts OI
Daily 0% -1% -1%
Weekly 4% 15% 9%
Learn how to use Sentiment in your trading strategy
Get My Guide

GBP/USD Daily Price Chart (July 2019 – March 6, 2020)

gbp/usd price moving higher

For all market moving data and events, see the DailyFX Calendar.

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) and the FTSE 100 – 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

News & Analysis at your fingertips.