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.

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
EUR/USD
Bullish
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
Bullish
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
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
GBP/USD
Bullish
USD/JPY
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
More View more
Real Time News
  • The #USD spent the bulk of Q2 in a range after a climactic Q1; and with a series of risk themes continuing to push, combined with an election in November, the door appears open for more vol in USD. Download our USD trading guide here: https://t.co/2Wo7EcwAht https://t.co/BA5dWk4wTt
  • $USD hegemony is at risk thanks to changes in the global economy and the long-term consequences of the US-China trade war. Get your market update from @CVecchioFX here:https://t.co/5GO9UrvO4y https://t.co/OTTEmg76W8
  • The immediate focus is on a break of this multi-week consolidation formation in the Australian Dollar with the broader rally vulnerable while below 7042. Get your AUD technical analysis here: https://t.co/iEYos1ioBc https://t.co/kuzB3Eqps0
  • #Gold prices have rallied to nine-year highs with the breakout testing multi-year uptrend resistance into the open of Q3. Can the rally be sustained? Download our latest Gold trading guide!: https://t.co/3KO2QWOnOt https://t.co/YIIGZdeIAJ
  • Why financial market traders must monitor both monetary and fiscal policy? Find out from @MartinSEssex here:https://t.co/Fkzk88Y5gm https://t.co/zerRXZC1Tq
  • Get your snapshot update of the of relative currency strength and exchange status from around the globe here: https://t.co/DmhBkd4B0k https://t.co/uj93z2SHpH
  • The Australian Dollar’s surge from the March lows may be coming to an end as bearish patterns begin to line up on multiple time-frames. Check out our #AUD trading guide to learn more here: https://t.co/pjfm07tqFd https://t.co/VypHLra1ER
  • The Evening Star candlestick is a three-candle pattern that signals a reversal in the market and is commonly used to trade forex. Learn more about the evening star candlestick pattern here: https://t.co/8OTE7m01IG https://t.co/Vumcng7UB3
  • After a miraculous recovery in Q2, equity markets will be left juggling the Fed’s policy and the threat of a second covid wave, all in an election year. Evidently, traders will have their hands full in Q3. Read our equity forecast here: https://t.co/JARqbOKIeM https://t.co/Ms6zEucjqg
  • Hey traders! I'm sure you've all heard about trend trading. Sharpen your knowledge here: https://t.co/jkliL5sxj7 https://t.co/uvlv1MCAHI
British Pound (GBP) Latest: Next GBP/USD Move Depends on Bank of England

British Pound (GBP) Latest: Next GBP/USD Move Depends on Bank of England

2020-06-18 08:00:00
Martin Essex, MSTA, Analyst
Share:

GBP price, Bank of England, news and analysis:

  • The Bank of England is expected to keep its benchmark Bank Rate at 0.1% today but there is a chance that it could increase its asset purchases by more than predicted.
  • That, in turn, could prompt a move higher in GBP/USD as it would underline the view that central banks will continue to flood the markets with liquidity to offset the economic impact of Covid-19.

GBP/USD on Bank of England watch

The Bank of England is all but certain to keep its benchmark Bank Rate at 0.1% today but traders in GBP/USD, the Sterling crosses, the FTSE 100 index and Gilts need to keep a close eye on the central bank’s decision on asset purchases.

The consensus view is that it will increase its quantitative easing (QE) program to £745 billion from £645 billion to counter the damage to the UK economy caused by the coronavirus pandemic. However, there is a chance that the increase could be as high as £200 billion rather than £100 billion.

In normal times, a larger than expected easing of monetary policy would likely send GBP lower. Now, though, it would likely be welcomed as another sign that central banks are willing to take decisive action to help economic growth recover. Ahead of these decisions, GBP/USD is trading in a narrow range around 1.2550 after its recent slide lower.

GBP/USD Price Chart, One-Hour Timeframe (June 10-18, 2020)

Latest GBP/USD price chart

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

You can watch a live webinar on the Bank’s decisions hosted by my colleague Justin McQueen at 1045 GMT/1145 BST by registering here

The Bank’s monetary policy committee will announce its decisions at 1100 GMT/1200 BST against a broadly negative backdrop as fears grow of a second wave of coronavirus infections. After rises in infections in the US and China, evidence is increasing that cases rise when lockdowns are lifted. That has led to another flow of funds into safe havens such as the US Dollar, the Japanese Yen and US Treasury bonds, and out of stocks, the Euro and crude oil.

Stocks in particular have eased over the last 24 hours, with the FTSE 100 index of leading London-listed stocks down around 0.4% in early London trading Thursday. Sentiment has been dented too by news that the Australian unemployment rate climbed to a 19-year high in May, sending the Australian Dollar lower.

Find out here how central banks impact the forex market

GBP/USD BULLISH
Data provided by
of clients are net long. of clients are net short.
Change in Longs Shorts OI
Daily -1% 8% 4%
Weekly -17% 55% 11%
What does it mean for price action?
Get My Guide

We look at currencies 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.