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
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
Bullish
Wall Street
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
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
Bearish
More View more
Real Time News
  • Technical indicators are chart analysis tools that can help traders better understand and act on price movement. Learn more about the importance of technical analysis here: https://t.co/NpC1D8y4Aa https://t.co/gaUllv1kra
  • Heads Up:💶 ECB Guindos Speech due at 09:15 GMT (15min) https://www.dailyfx.com/economic-calendar#2020-09-18
  • Join @PaulRobinsonFX 's #webinar at 5:30 AM ET/9:30 AM GMT as he goes over London #FX & #CFD charts for the next week. Register here: https://t.co/CoMkMA0pdF https://t.co/TBv201f9hp
  • Did you know a Doji candlestick signals market indecision and the potential for a change in direction. What are the top five types of Doji candlesticks? Find out: https://t.co/td5WA4hCZC https://t.co/RENalKFdNu
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 97.33%, while traders in NZD/USD are at opposite extremes with 66.32%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/iWNOm3LGo4
  • Commodities Update: As of 07:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: 1.08% Silver: 0.47% Gold: 0.44% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/sjPmNBF4Dr
  • Entry orders are a valuable tool in forex trading. Traders can strategize to come up with a great trading plan, but if they can’t execute that plan effectively, all their hard work might as well be thrown out. Learn how to place entry orders here: https://t.co/lAFyv1gM0P https://t.co/qmkJaNY3wf
  • China flexing their muscles as US look to sell $7bln worth of arms to Taiwan https://t.co/RYV8MnfYvN
  • Forex Update: As of 07:00, these are your best and worst performers based on the London trading schedule: 🇳🇿NZD: 0.56% 🇦🇺AUD: 0.13% 🇪🇺EUR: 0.10% 🇨🇦CAD: 0.09% 🇨🇭CHF: 0.04% 🇬🇧GBP: 0.02% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/0Ysc7X6418
  • $USDJPY edging closer to jawboning levels https://t.co/X6Er140Zbt
British Pound (GBP) Latest: GBP/USD Shrugs off Inflation Data, Steady Pre Fed

British Pound (GBP) Latest: GBP/USD Shrugs off Inflation Data, Steady Pre Fed

2020-09-16 08:00:00
Martin Essex, MSTA, Analyst
Share:

GBP price, Brexit news and analysis:

  • UK inflation fell in August to its lowest level for nearly five years but was above expectations, leaving GBP little changed.
  • Looking ahead, the near-term direction of GBP/USD will be determined by the Federal Reserve’s monetary policy decisions ahead of the Bank of England meeting Thursday.
  • The UK Government is talking to rebels to smooth the path for its Internal Market Bill that would break the Brexit divorce treaty.

GBP/USD range trading ahead of Fed, BoE

GBP/USD is trading in a narrow range ahead of the Federal Reserve’s monetary policy decisions due to be announced after the close of European markets Wednesday at 1900 BST. Those decisions will likely determine whether the pair breaks upwards or downwards, although it may continue to range trade until the Bank of England’s policy announcement Thursday. Neither central bank will move interest rates so the focus will on whether their statements are hawkish or, as expected, dovish.

Find out here how central banks impact the FX markets

In the meantime, there has been little reaction to the latest UK inflation data. The headline rate dropped to 0.2% year/year in August, its lowest for nearly five years and down from 1.0% in July. However, that was above the zero forecast by analysts and was shrugged off by Sterling traders.

GBP/USD Price Chart, One-Hour Timeframe (September 10-16, 2020)

Latest GBP/USD price chart.

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

GBP/USD BULLISH
Data provided by
of clients are net long. of clients are net short.
Change in Longs Shorts OI
Daily -5% 1% -2%
Weekly -6% 13% 3%
What does it mean for price action?
Get My Guide

Data and monetary policy aside, the main focus for Sterling traders continues to be Brexit as the UK Parliament debates the Internal Market Bill that would break the UK’s Brexit treaty with the EU. The Government is currently talking to rebels within the ruling Conservative Party to ease its passage and Justice Secretary Robert Buckland said Wednesday that he believes there is a way through.

So far, the markets have taken this in their stride and will likely continue to do so as the UK and the EU continue to talk on a so-far-elusive post-Brexit trade deal.

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

Starts in:
Live now:
Sep 22
( 10:09 GMT )
Join Day 3 of the DailyFX Summit discussing currencies
Trading Sentiment
Register for webinar
Join now
Webinar has ended

--- Written by Martin Essex, Analyst

Feel free to contact me on Twitter @MartinSEssex

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

DISCLOSURES