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.

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
Bearish
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
Gold
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
GBP/USD
Bearish
USD/JPY
Bullish
More View more
Real Time News
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 97.38%, while traders in EUR/GBP are at opposite extremes with 65.20%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/WGk95Bnjx5
  • Commodities Update: As of 16:00, these are your best and worst performers based on the London trading schedule: Gold: -0.45% Oil - US Crude: -0.63% Silver: -1.11% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/RvLy6xA9Is
  • Forex Update: As of 16:00, these are your best and worst performers based on the London trading schedule: 🇳🇿NZD: -0.06% 🇯🇵JPY: -0.15% 🇬🇧GBP: -0.22% 🇨🇦CAD: -0.32% 🇦🇺AUD: -0.38% 🇪🇺EUR: -0.43% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/MZIiNOFxXu
  • Hey traders! Wrap up your week with a market update from @DailyFX Chief Strategist @JohnKicklighter 👇 https://t.co/DHufbBKbDu
  • Canadian PM Trudeau says Canada purchasing 20 million vaccine doses from Astrazeneca -BBG
  • Indices Update: As of 16:00, these are your best and worst performers based on the London trading schedule: US 500: 0.26% France 40: 0.03% Wall Street: 0.02% FTSE 100: -0.06% Germany 30: -0.06% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/jByk8LUAt6
  • UK Government Official says either outcome is possible on Brexit
  • UK Government Official says if gaps in fisheries and level playing field are bridged, the EU's more constructive attitude will need to be translated into more realistic positions in the days to come
  • Big headline that says the EU has informed the UK that it must commit to some key demands in next week's trade talks if there is progress before the October deadlines. That said, I don't think this is a particularly new refrain between those two. It's the clock that matters
  • RT @Tams707: #USDZAR tests trendline resistance. Potential breakout in play? https://www.dailyfx.com/forex/market_alert/2020/09/25/South-African-Rand-Price-Forecast-USDZAR-Breakout-Potential-Brewing-LiveEdu-TDC.html
UK Q2 GDP Falls by a Record 20.4% But Signs of a Recovery Appear, GBPUSD Unchanged

UK Q2 GDP Falls by a Record 20.4% But Signs of a Recovery Appear, GBPUSD Unchanged

2020-08-12 06:29:00
Nick Cawley, Strategist
Share:

UK Q2 GDP and GBP/USD Price, Chart and Analysis:

  • UK Q2 GDP fell by a record 20.4%, the largest contraction on record.
  • Sterling unchanged on the release as June data points to a pick-up in activity.
GBP Forecast
GBP Forecast
Recommended by Nick Cawley
Q3 Sterling Guides
Get My Guide

The latest UK GDP data showed that the economy entered into a technical recession as activity slumped across the board. The preliminary Q2 q/q reading fell by a record 20.4%, the largest fall since quarterly records began in 1955. Today’s ONS data shows that the UK economy is now 22.1% smaller than it was at the end of 2019, highlighting the effect the COVID-19 pandemic has had on economic activity.

UK Q2 GDP Falls by a Record 20.4% But Signs of a Recovery Appear, GBPUSD Unchanged

There was a small ray of light in today’s release with the June monthly reading showing growth of 8.7%, beating estimates of 8.0% as the UK began to unwind lockdown measures.

UK Q2 GDP Falls by a Record 20.4% But Signs of a Recovery Appear, GBPUSD Unchanged

For all market-moving data releases and events see the DailyFX Economic Calendar

GBP/USD remains little changed post-GDP release and trades just under 1.3050, a level the pair opened up at this week. Short-term support remains around the 1.3000 big figure with 1.2978 a secondary level consisting of the 20-dma and the August low print. The technical golden cross – 50-dma through the 200-dma – still underpins Sterling to a certain extent with Tuesday’s high of 1.3136 the first upside target.

How to Read a Candlestick Chart

GBP/USD Daily Price Chart (December 2019 – August 12, 2020)

UK Q2 GDP Falls by a Record 20.4% But Signs of a Recovery Appear, GBPUSD Unchanged
GBP/USD BEARISH
Data provided by
of clients are net long. of clients are net short.
Change in Longs Shorts OI
Daily 6% -10% -2%
Weekly 14% -19% -4%
Learn How to Use Sentiment in Your Trading Strategy
Get My Guide

Traders of all levels and abilities will find something to help them make more informed decisions in the new and improved DailyFX Trading Education Centre

What is your view on Sterling – 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