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
Bullish
Oil - US Crude
Bullish
Wall Street
Mixed
Gold
Mixed
GBP/USD
Mixed
USD/JPY
Mixed
More View more
Real Time News
  • Have you been catching on your @DailyFX podcast "Global Markets Decoded"? Catch up on them now, before new episodes release! https://t.co/Twr44cZ1GB https://t.co/s8MwR4fS22
  • #USD, #GBP, #EUR Volatility Ahead of Cross-Continental Geopolitical Risks 🌎 https://www.dailyfx.com/forex/fundamental/daily_briefing/daily_pieces/asia_am_briefing/2020/09/21/USD-GBP-EUR-Volatility-Ahead-of-Cross-Continental-Geopolitical-Risks.html
  • Traders utilize varying time frames to speculate in the forex market. The two most common are long- and short-term-time frames which transmits through to trend and trigger charts. Learn more about time-frame analysis here: https://t.co/UalZ8cRSXB https://t.co/YqhzoZ7Iy2
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 97.06%, while traders in NZD/USD are at opposite extremes with 71.15%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/HBqqTapm9J
  • Forex Update: As of 04:00, these are your best and worst performers based on the London trading schedule: 🇦🇺AUD: 0.38% 🇬🇧GBP: 0.33% 🇨🇦CAD: 0.25% 🇯🇵JPY: 0.25% 🇨🇭CHF: 0.19% 🇳🇿NZD: 0.19% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/JH55ljBb9H
  • Indices Update: As of 04:00, these are your best and worst performers based on the London trading schedule: US 500: 0.10% Wall Street: 0.02% France 40: -0.33% Germany 30: -0.36% FTSE 100: -0.63% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/8yRTPMzD0b
  • The #AustralianDollar may continue to outperform its haven-associated counterparts after breaking above key chart resistance. $AUDUSD, $AUDJPY, $AUDCHF levels to watch. $AUD https://www.dailyfx.com/forex/technical/home/analysis/aud-usd/2020/09/21/Australian-Dollar-Time-Cycle-AUDUSD-AUDJPY-AUDCHF-Key-Levels.html?CHID=9&QPID=917708&utm_source=Twitter&utm_medium=Moss&utm_campaign=twr https://t.co/wfa6HxnANh
  • HSBC share price tumbled 3.2% after Chinese media agency Global Times reported that Beijing is considering putting HSBC into its Unreliable Entity List (UEL). Hang Seng Index fell 0.7% in early Asia trading hours. https://t.co/zrUCkWmH1w
  • 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/Dx6UMk2g1c
  • Commodities Update: As of 02:00, these are your best and worst performers based on the London trading schedule: Silver: 0.53% Oil - US Crude: 0.35% Gold: 0.17% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/BjCmKqaBM8
British Pound Latest (GBP) - EU Gives UK Brexit Ultimatum

British Pound Latest (GBP) - EU Gives UK Brexit Ultimatum

2020-09-11 08:00:00
Justin McQueen, Analyst
Share:

GBP/USD, EUR/GBP Price Analysis & News

  • UK GDP Broadly In-Line With Expectations
  • EU Gives UK Ultimatum
  • EUR/GBP Benefits from the Best of Both Worlds

UK GDP: UK growth for July is broadly in line with expectations, albeit slightly on the softer side. For July, GDP grew 6.6%, in which the ONS reported that while UK GDP may be 18.6% higher than its April low, the UK still has to make up half of the GDP lost since the start of the pandemic. In reaction to the GDP report, the Pound saw a muted reaction on the whole. That said, going forward, in light of fiscal measures, namely the “eat out to help out” scheme, expectations are for a strong set of August figures.

Starts in:
Live now:
May 05
( 12:05 GMT )
Join Day 3 of the DailyFX Summit discussing currencies
Equity Markets
Register for webinar
Join now
Webinar has ended

UK Economic Data

British Pound Latest (GBP) - EU Gives UK Brexit Ultimatum

Source: Refinitiv, DailyFX

EU Gives UK Ultimatum: Political uncertainty and the repricing of no-deal Brexit risks has been the main driver behind a tough week for the Pound, which has plummeted from above 1.32 to briefly trading below 1.28. As the UK looks to pass the Internal Market Bill (IMB) through parliament in the coming weeks, trust between the UK and EU has arguably hit an all-time low in this Brexit saga with the EU giving the UK an ultimatum. Either withdraw the bill by the end of the month or face possible legal action if not.

With that said, in the absence of amendments, the passing of the bill in its current form will materially increase the odds of a no-deal Brexit and thus pave the way for further losses in the Pound. This sentiment has been reflected in the options market as premiums for downside protection soars. On the technical front, the line in the sand for a move lower sits at 1.2735, which marks the 200DMA, failure to hold and 1.25 beckons.

GBP/USD PRICE CHART: DAILY TIME FRAME

GBP/USD MIXED
Data provided by
of clients are net long. of clients are net short.
Change in Longs Shorts OI
Daily 6% 3% 5%
Weekly -8% 22% 6%
Learn how to use Sentiment in your trading strategy
Get My Guide
British Pound Latest (GBP) - EU Gives UK Brexit Ultimatum

Source: Refinitiv

Best of Both World’s for EUR/GBP, But Above 0.9300 is Tough to Hold

The move lower in the Pound had been further compounded by the surge in EUR/GBP which posted its 2nd best day this year rising over 1.6%. The cross benefitting from the best of both world’s of Brexit uncertainty and the ECB’s surprising calmness over the appreciation in the Euro, subsequently giving the all-clear for Euro bulls. That said however, with EUR/GBP rising to its highest level since the COVID crash, rising to 0.9270, the typical nature of the cross since Brexit has been one of which where EUR/GBP has failed to sustain a move above 0.9300, despite some analysts emerging with parity calls again.

EUR/GBP PRICE CHART: WEEKLY TIMEFRAME

EUR/GBP BEARISH
Data provided by
of clients are net long. of clients are net short.
Change in Longs Shorts OI
Daily 6% 2% 4%
Weekly 34% -28% -12%
Learn how to use Sentiment in your trading strategy
Get My Guide
British Pound Latest (GBP) - EU Gives UK Brexit Ultimatum

Source:IG

10 Most Popular Candlestick Patterns

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES