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
Breaking news

Federal Reserve Leaves Interest Rates Unchanged, Maintains Monthly Asset Purchases

Real Time News
  • Crude oil prices are trading largely unchanged following last week's rebound as the Delta variant of Covid and Chinese regulatory measures temper the near-term demand outlook. Get your market update from @FxWestwater here:https://t.co/T3oQa98J3D https://t.co/3wDTX3N0q3
  • Robinhood said to price IPO at $38 per share - BBG
  • The British Pound could remain vulnerable against the US Dollar while perhaps looking to push higher against the Australian Dollar, Canadian Dollar and New Zealand Dollar.Get your market update from @ddubrovskyFX here:https://t.co/9iZa4oE4WQ https://t.co/4qC3c5Ki0v
  • 🇯🇵 Foreign Bond Investment (24/JUL) Actual: ¥1087.4B Previous: ¥-7827B https://www.dailyfx.com/economic-calendar#2021-07-28
  • 🇯🇵 Foreign Bond Investment (17/JUL) Actual: ¥-7827B Previous: ¥-1217.8B https://www.dailyfx.com/economic-calendar#2021-07-28
  • RT @IGSquawk: "China’s securities regulator convened a virtual meeting with executives of major investment banks on Wednesday night, attemp…
  • Heads Up:🇯🇵 Foreign Bond Investment (24/JUL) due at 23:50 GMT (15min) https://www.dailyfx.com/economic-calendar#2021-07-28
  • Heads Up:🇯🇵 Foreign Bond Investment (17/JUL) due at 23:50 GMT (15min) Previous: ¥-1217.8B https://www.dailyfx.com/economic-calendar#2021-07-28
  • The S&P 500 and Dow Jones could remain biased higher now that retail investors are back to aggressively shorting them. But, will recent shifts in sentiment materially change the broader outlook? Find out from @ddubrovskyFX here:https://t.co/RPirU4f4sp https://t.co/J0TQgOtRc4
  • 7 out of 11 S&P 500 sectors ended lower, with 55.6% of the index’s constituents closing in the red. Energy (+0.97%) and communication services (+0.75%) outperformed, whereas consumer staples (-0.87%) and utilities (-0.69%) lagged behind. https://t.co/akEBY85xtc
British Pound (GBP) Latest: GBP/USD Trend Higher May Persist After UK Inflation Data

British Pound (GBP) Latest: GBP/USD Trend Higher May Persist After UK Inflation Data

Martin Essex, MSTA, Analyst

GBP price, UK inflation data, Brexit news and analysis:

  • UK inflation figures showed an increase in October and that could help the recent trend higher in GBP/USD continue.
  • The EU-UK talks on their trade relationship after the Brexit implementation period ends on December 31 could reportedly result in an agreement early next week and that is helping GBP too.
  • However, if there is no sign of progress Sterling is likely to give up some of its recent gains.
Advertisement

GBP/USD trend upwards to persist

The recent trend higher in GBP/USD could stretch further after news that the UK inflation rate rose to 0.7% in October, above both the previous 0.5% and the 0.6% forecast by economists polled by the news agencies.

UK Inflation

Latest UK inflation data.

Source: DailyFX (You can click on it for a larger image)

The numbers are another positive factor for GBP/USD, which looks likely to hit 1.33 shortly. However, the pair’s fortunes remain tied to the EU-UK negotiations on their relationship once the current Brexit implementation period ends on December 31.

GBP/USD Price Chart, 30-Minute Timeframe (November 13-18, 2020)

Latest GBP/USD price chart.

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

Recent reports suggest that an agreement between the EU and the UK is possible early next week and any deal would also reinforce Sterling’s recent strength. Note, though, that if such a deal is not forthcoming there is now very little time left for the ratification process necessary for an agreement to be implemented – a potential negative for the Pound but positive for the FTSE 100 index of the major London listed stocks, which tend to benefit from GBP weakness.

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

--- 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