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
Wall Street
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
More View more
Real Time News
  • Stocks appear to be in a corrective phase but could get put to the test; levels and lines to watch in the days ahead. Get your weekly equities forecast from @PaulRobinsonFX here: https://t.co/H1BaTlIHjY https://t.co/zP3mjfslSD
  • Currency exchange rates are impacted by several factors. Are different world leaders a contributing factor? Find out here: https://t.co/4jsORznRTE https://t.co/Of1thU4zXw
  • Further your forex knowledge and gain insights from our expert analysts on AUD with our free guide, available today: https://t.co/p2FhEwym1E https://t.co/MjiYB85TSF
  • Many people are attracted to forex trading due to the amount of leverage that brokers provide. Leverage allows traders to gain more exposure in financial markets than what they are required to pay for. Learn about FX leverage here: https://t.co/BdgFmkRxVw https://t.co/fIO9TP7D62
  • Trading Forex is not a shortcut to instant wealth, excessive leverage can magnify losses, and sentiment is a powerful indicator. Learn about these principles in depth here: https://t.co/lZFM8youtX https://t.co/Xja8DHUqlH
  • Risk management is one of the most important aspects of successful trading, but is often overlooked. What are some basic principles or risk management? Find out from @PaulRobinsonFX here: https://t.co/IsnpfJhp91 https://t.co/9po5Lg4vnR
  • The Japanese Yen is eyeing the upcoming Bank of Japan rate decision and CPI figures, but JPY crosses will likely remain dependent on broader market sentiment. Get your weekly $JPY forecast from @FxWestwater here: https://t.co/x9rbQpPfWe https://t.co/2x1R5XTVea
  • Consolidation or bull flag? A bull flag is a continuation pattern that occurs as a brief pause in the trend following a strong price move higher. Learn how to better spot these formations here: https://t.co/yOEvLjKnct https://t.co/uCaWQiu4Ly
  • Crude and Brent oil are on track to extend higher as Gulf Coast supply disruptions and a positive OPEC report bolster sentiment. Uranium is on a massive surge, aided by the famous Wall Street Bets group. Get your market update from @FxWestwater here:https://t.co/XrpV0jcy8e https://t.co/g2To3LmUah
  • RT @michaeljburry: Read thread.
British Pound (GBP) Latest: USD Stabilizing, Hitting GBP/USD, EUR/USD, AUD/USD

British Pound (GBP) Latest: USD Stabilizing, Hitting GBP/USD, EUR/USD, AUD/USD

Martin Essex, MSTA, Analyst

GBP price, news and analysis:

  • The US Dollar looks to be steadying in early European business Thursday, weakening pairs such as GBP/USD, EUR/USD, AUD/USD and NZD/USD.
  • However, market optimism remains intact despite the riots in Washington DC, suggesting further Dollar weakness ahead as traders leave the safe-haven currency and US Treasuries, and resume buying of assets seen as riskier such as Sterling.
Advertisement

GBP/USD hit by modest rally in USD

The British Pound and many other currencies are a tad weaker in Europe early Thursday thanks to a modest recovery in the US Dollar. However, the downward trend in the safe-haven USD looks likely to resume soon as market optimism about the future remains intact.

As the chart below shows, GBP/USD continues to move higher within a well-defined channel dating back to September 2020.

GBP/USD Price Chart, Daily Timeframe (September 18, 2020 – January 7, 2021)

Latest GBP/USD price chart.

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

While the steadying of the US Dollar after its recent losses is no surprise given Wednesday’s riots in DC and its role as a safe haven, there are several factors that could prompt a further risk rally. The apparent victory by the Democrats in Georgia increases the chances that President-elect Joe Biden will be able to push through big borrowing and big spending measures that would lead to more economic growth.

Moreover, hope remains intact that vaccines will eventually conquer Covid-19 and that investors will look past the DC riots into a somewhat brighter future.

You can find our guide to the top trading opportunities in 2021 by clicking here and scrolling down to the bottom of the page

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