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
Subscribe
Please try again
EUR/USD
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
Oil - US Crude
Bullish
Wall Street
Bullish
Gold
Bearish
GBP/USD
Bearish
USD/JPY
Bullish
More View more
Real Time News
  • Heads Up:🇯🇵 Foreign Bond Investment (21/NOV) due at 23:50 GMT (15min) Previous: ¥1009.1B https://www.dailyfx.com/economic-calendar#2020-11-26
  • What are the six major stock types utilized by every trader? Learn here: https://t.co/6t70C00r1S https://t.co/mFCK62RXoq
  • President Donald Trump: Will give up power if electoral college votes for Biden - BBG
  • President Donald Trump says conceding is going to be a very hard thing to do - BBG
  • Do you know how to properly Identify a double top formation? Double tops can enhance technical analysis when trading both forex or stocks, making the pattern highly versatile in nature. Learn more about the double top formation here: https://t.co/t9FlspUVZz https://t.co/oWfy1SN26d
  • Forex Update: As of 21:00, these are your best and worst performers based on the London trading schedule: 🇯🇵JPY: 0.20% 🇨🇭CHF: 0.16% 🇪🇺EUR: -0.01% 🇦🇺AUD: -0.06% 🇨🇦CAD: -0.08% 🇬🇧GBP: -0.23% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/n8HWYFhIBt
  • Turkey's central bank raises reserve requirement ratios - BBG $USDTRY
  • Commodities Update: As of 21:00, these are your best and worst performers based on the London trading schedule: Gold: 0.12% Silver: -0.06% Oil - US Crude: -1.57% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/sNsR5cEIpR
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 93.73%, while traders in NZD/USD are at opposite extremes with 74.62%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/Ej2mcEGBUh
  • BoC Deputy Governor Wilkins: Real estate bounce back has been 'sharp, 'aggressive' Pent-up demand drove sharp housing rebound Doesn't see a lot of speculation in housing - BBG $CAD
Bank of England Ramps Up QE Program, Rates Left Unchanged, Sterling Pushes Higher

Bank of England Ramps Up QE Program, Rates Left Unchanged, Sterling Pushes Higher

2020-11-05 07:25:00
Nick Cawley, Strategist
Share:

Bank of England (BoE) and GBP/USD Price, Analysis and Chart:

  • Bank of England ramps up QE by GBP150 billion.
  • GBP/USD moves higher as interest rates left untouched.
Advertisement

The UK central bank has boosted its bond-buying program by a further GBP150 billion today after the BoE warned that recent Covid-19 developments will weigh on near-term spending and lead to a decline in GDP in Q4 2020. The quantitative program which started in November 2009 now stands at GBP895 billion. All other policy measures were left untouched. The central bank sees UK GDP contracting by 11% in 2020, compared to prior projections of -9.5%, while GDP is set to expand by 7.25% in 2021, compared to August’s projection of +9%.

Bank of England Ramps Up QE Program, Rates Left Unchanged, Sterling Pushes Higher
Trading Forex News: The Strategy
Trading Forex News: The Strategy
Recommended by Nick Cawley
Trading Forex News: The Strategy
Get My Guide

GBP/USD picked up a small bid post-BoE announcement, due in part to relief that the bank rate was left untouched. There had been talk recently that the central bank was looking at negative interest rates, so a unanimous decision to leave the bank rate untouched gave Sterling a small nudge higher.

Negative Interest Rates - Can They Stimulate the Economy?

Chancellor of the Exchequer Rishi Sunak is set to speak this afternoon and announce a new package of fiscal measures to help boost the economy. Sunak is expected to extend the furlough scheme for the length of lockdown 2.0 if businesses are told to close and he may extend the scheme to Scotland, Northern Ireland, and Wales if they also announce a national lockdown, according to a report in The Daily Telegraph.

GBP Forecast
GBP Forecast
Recommended by Nick Cawley
Download our New Q4 Sterling Forecast
Get My Guide

GBP/USD Five Minute Price Chart (November 5, 2020)

Bank of England Ramps Up QE Program, Rates Left Unchanged, Sterling Pushes Higher
GBP/USD BEARISH
Data provided by
of clients are net long. of clients are net short.
Change in Longs Shorts OI
Daily 26% -9% 2%
Weekly 21% 3% 9%
Learn How to Use Sentiment in Your Trading Strategy
Get My Guide

IG client sentiment data show 51.73% of traders are net-long with the ratio of traders long to short at 1.07 to 1.The number of traders net-long is 20.30% higher than yesterday and 6.34% lower from last week, while the number of traders net-short is 5.91% lower than yesterday and 21.61% lower from last week.

Traders are further net-long than yesterday and last week, and the combination of current sentiment and recent changes gives us a stronger GBP/USD-bearish contrarian trading bias.

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