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:🇯🇵 Foreign Bond Investment (31/JUL) due at 23:50 GMT (15min) Previous: ¥1087.4B https://www.dailyfx.com/economic-calendar#2021-08-04
  • Natural gas continues to look higher, as hot weather and drought conditions across the United States and Europe, help fuel the already strong demand narrative for the commodity. Get your market update from @FxWestwater here:https://t.co/n1iT64aBM4 https://t.co/zsnejKOPvq
  • 9 out of 11 S&P 500 sectors ended lower, with 76% of the index’s constituents closing in the red. Energy (-2.93%), industrials (-1.37%) and consumer staples (-1.26%) underperformed, whereas communication services (+0.23%) and information technology (+0.19%) ended higher. https://t.co/ZhikvkT3L6
  • The Japanese Yen could rise against the US Dollar and Australian Dollar as retail investors increase upside exposure in USD/JPY and AUD/JPY. What are key technical levels to watch? Get your market update from @ddubrovskyFX here:https://t.co/tZDMOGf8JI https://t.co/ECryTOl1ui
  • 🇧🇷 Interest Rate Decision Actual: 5.25% Expected: 5.25% Previous: 4.25% https://www.dailyfx.com/economic-calendar#2021-08-04
  • Heads Up:🇧🇷 Interest Rate Decision due at 22:00 GMT (15min) Actual: 5.25% Expected: 5.25% Previous: 4.25% https://www.dailyfx.com/economic-calendar#2021-08-04
  • The US Dollar put in a strong spike this morning on the back of some comments from FOMC Vice Chair, Richard Clarida. Get your market update from @JStanleyFX here:https://t.co/eegD686FEi https://t.co/FQsHwu6RjN
  • Forex Update: As of 20:00, these are your best and worst performers based on the London trading schedule: 🇳🇿NZD: 0.39% 🇨🇦CAD: -0.04% 🇬🇧GBP: -0.19% 🇪🇺EUR: -0.23% 🇨🇭CHF: -0.27% 🇯🇵JPY: -0.40% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/y9WBLkpRXG
  • Heads Up:🇧🇷 Interest Rate Decision due at 21:00 GMT (15min) Expected: 5.25% Previous: 4.25% https://www.dailyfx.com/economic-calendar#2021-08-04
  • August is typically a risk-off month for FX markets, with the Japanese Yen and Swiss Franc the top performers. The Australian and New Zealand Dollars have declined the most. Get your market update from @CVecchioFX here:https://t.co/DeCKSRrDpz https://t.co/TMnfL74loo
British Pound (GBP) Latest - Lockdown 2.0 Announced, Brexit Talks Continue

British Pound (GBP) Latest - Lockdown 2.0 Announced, Brexit Talks Continue

Nick Cawley, Strategist

Brexit, FTSE and GBP/USD Price, Analysis and Chart:

  • New national lockdown announced on coronavirus death fears
  • Media reports suggest that the EU and UK are nearing an agreement on fisheries.
Advertisement

The UK government announced a new, one-month, lockdown over the weekend starting this Thursday. The second nationwide lockdown will see schools and universities remain open however and the government says that at the end of the lockdown, the country will go back to the current tiered system. There remains concerns however that the data that the government is using to justify a new lockdown are out of date and may be too high, according to a report in the Daily Telegraph. The numbers from Cambridge University suggest daily fatalities could hit 4,000 early next month, while the report drawn up three weeks ago suggests daily fatalities should currently be around 1,000 per day compared to last week’s daily average of around 250.

Trade talks between the EU and UK will continue today with media reports suggesting that the two sides are moving closer to a deal on fisheries. Clement Beaune, French Minister of State for European affairs said over the weekend that fisheries is equally important to both sides and that a solution should be found that respects the interests of both parties.

The FTSE 100 is trying to claw back some of its recent heavy losses although the move lacks conviction. The index held above the 23.6% Fibonacci retracement level at 5,464 during last week’s sell-off, while the upside is likely to be contained by a cluster of recent support levels which have now turned to resistance between 5,714 and 5,763. Note also that all three simple moving averages may also curb any rally.

FTSE 100 Daily Price Chart (January – November 2, 2020)

British Pound (GBP) Latest - Lockdown 2.0 Announced, Brexit Talks Continue

GBP/USD continues to slide lower, with the US dollar the driver of the move. After making a multi-week high of 1.3184 on October 21, the pair have moved ever lower, making a short-term series of lower highs. If the sell-off continues, the pair may attempt to breach the multi-month low around 1.2675. The CCI indicator is showing the pair as oversold, while the US dollar basket chart shows the greenback as being overbought in the short-term. The US dollar will continue to form GBP/USD price action this week with tomorrow’s US presidential elections the main driver.

GBP/USD Daily Price Chart (January – November 2, 2020)

British Pound (GBP) Latest - Lockdown 2.0 Announced, Brexit Talks Continue

IG client sentiment data shows 46.47% of traders are net-long with the ratio of traders short to long at 1.15 to 1.We typically take a contrarian view to crowd sentiment, and the fact traders are net-short suggests GBP/USD prices may continue to rise.However, the combination of current sentiment and recent changes gives us a further mixed GBP/USD trading bias.

T

raders 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