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
  • Heads Up:🇨🇭 Balance of Trade (SEP) due at 06:00 GMT (15min) Previous: CHF4.5B https://www.dailyfx.com/economic-calendar#2021-10-19
  • Heads Up:🇨🇳 FDI (YTD) YoY (SEP) due at 06:00 GMT (15min) Previous: 22.3% https://www.dailyfx.com/economic-calendar#2021-10-19
  • MACD who? The Moving Average Convergence Divergence (MACD) is a technical indicator which simply measures the relationship of exponential moving averages (EMA). Find out how you can incorporate MACD into your trading strategy here: https://t.co/ZNs4QhQGQ6 https://t.co/Q6ZyB8I4cP
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 92.84%, while traders in GBP/JPY are at opposite extremes with 76.20%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/IMWFZ1FT51
  • Becoming a forex trader means living and breathing the excitement, risk and reward of trading in the biggest and most liquid market in the world. Do you have what it takes? Read here to discover the qualities and processes it takes to build consistency: https://t.co/EfWEACQ6Cz https://t.co/FxRLDVBvLq
  • Forex Update: As of 04:00, these are your best and worst performers based on the London trading schedule: 🇳🇿NZD: 0.58% 🇦🇺AUD: 0.56% 🇪🇺EUR: 0.35% 🇨🇦CAD: 0.29% 🇬🇧GBP: 0.29% 🇯🇵JPY: 0.18% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/5fwfLGIp36
  • Indices Update: As of 04:00, these are your best and worst performers based on the London trading schedule: France 40: 0.15% Germany 30: 0.13% FTSE 100: 0.09% US 500: 0.01% Wall Street: -0.04% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/v4CQ9vY94q
  • Further your forex knowledge and gain insights from our expert analysts @ddubrovskyFX and @FxWestwater on JPY with our free Q4 market analysis guide, available for free today.https://t.co/mzeJ5x73N3 https://t.co/hF59qq3gyG
  • The Fed 2022 rate forecast is at nosebleed levels, but the Dollar still isn't following along. Will it be drug lower if the outlook sours? And what will happen to the S&P 500 as it closes back in on its record high? https://www.dailyfx.com/forex/video/daily_news_report/2021/10/19/SP-500-Rally-to-Record-Will-Flag-Dollar-Anchored-as-Fed-Forecasts-Surge.html https://t.co/5QL5QSMFnc
  • Markets move in cycles, and stocks do too, with certain sectors carrying more attraction in various backdrops. Learn more here:https://t.co/HMyeIy09Wm https://t.co/qCYioLzj2f
British Pound (GBP) Latest: GBP/USD Bullish After Positive UK PMIs

British Pound (GBP) Latest: GBP/USD Bullish After Positive UK PMIs

Martin Essex, MSTA, Analyst

GBP price, PMI news and analysis:

  • The UK PMIs for June all came in higher than economists were expecting, with the manufacturing index just above the 50 level that separates expansion from contraction.
  • That has improved the outlook for GBP/USD and the GBP crosses even though GBP/USD eased back marginally after the data.
  • Earlier, the pair was given a modest boost when the White House trade adviser, Peter Navarro, said the US-China phase one trade pact remains in place after earlier saying it was “over”.
  • Technically, a bull flag has developed on the GBP/USD chart, suggesting a high-volume breakout to the upside, continuing the previous trend higher.

GBP/USD outlook improves

The outlook for GBP/USD has improved after news that the “flash” purchasing managers’ indexes for the UK economy in June all rose by more than expected, with the manufacturing index just creeping above the 50 mark that separates expansion from contraction.

UK PMIs

The PMIs were all at their highest levels for four months as some of the coronavirus lockdowns were eased. This prompted IHS Markit, which compiles the data, to note: “Looking ahead, manufacturers indicated a rise in business optimism to its highest since September 2018. Expectations of higher output in the next 12 months reflected hopes of a sustained recovery in manufacturing operations from the slump in production volumes seen during the initial phase of the Covid-19 pandemic.

The IHS forecasting team expects the UK economy to contract by 11.9% this year before expanding by a relatively modest 4.9% in 2021, which is far more cautious than the 15% surge anticipated in 2021 by the Bank of England.

GBP/USD Price Chart, Daily Timeframe (March 5 – June 23, 2020)

Latest GBP/USD price chart.

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

Prior to the UK numbers, the June PMIs for France, Germany and the Eurozone as a whole all exceeded the consensus forecasts of the economists polled by the news agencies. The French data stood out in particular, with the manufacturing, services and composite PMIs all climbing back above the 50 mark that suggests expansion rather than contraction.

Earlier, GBP/USD was given a very modest boost by an improvement in risk appetite in the markets as a whole. They were taken aback when Peter Navarro, the White House trade adviser, said the US-China phase one trade pact was over – only to rally when he reversed position, saying the deal “continues in place”. This was backed by US President Donald Trump, who tweeted that it is still “fully intact”.

Bull flag improves technical outlook

Turning to the technical position, as the chart above shows a bull flag has developed in GBP/USD. This suggests a continuation of the previous upward trend, with a high-volume breakout likely to the upside. A similar bull flag has developed on the EUR/USD chart and that price already shows signs of an upside break.

Like to know how to trade a bullish flag pattern? Here’s how to

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