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
Mixed
Oil - US Crude
Bearish
Wall Street
Mixed
Gold
Mixed
GBP/USD
Mixed
USD/JPY
Bullish
More View more
Real Time News
  • Tune in to @IlyaSpivak 's #webinar at 10:00 PM ET/3:00 AM GMT for insight on the cross-market outlook in the week ahead. Register here: https://t.co/E213bTtq5C https://t.co/Sj2NSgZ4xD
  • Central banks often deem it necessary to intervene in the foreign exchange market to protect the value of their national currency. Learn how central bank intervention can impact your trading here: https://t.co/8G8mUX4so6 https://t.co/MAn2EL32sU
  • In the week ahead, around 25% of S&P 500 companies will release their results, including GE, Johnson & Johnson, 3M, Microsoft, Boeing, AT&T, Facebook, Apple, Tesla, Visa and Amazon. Read more on my earnings outlook report. https://www.dailyfx.com/forex/fundamental/forecast/weekly/title/2021/01/17/Dow-Nasdaq-SP-500-Outlook-Earnings-May-Bring-Positive-Surprises.html
  • Wall Street Futures Update: Dow Jones (+0.20%) S&P 500 (+0.28%) Nasdaq 100 (+0.51%) [delayed] -BBG
  • Nearly 80% of the S&P 500 constituents closed in the red on Friday, dragged by materials (-0.43%), financials (-0.38%) and energy (-0.34%) whereas defensive utilities (+0.20%), real estate (+0.15%) and communication services (+0.02%) outperformed. https://t.co/vf08Fhfvxd
  • Traders focus a lot of their energy on spotting the perfect time to enter a trade. While this is important, it is ultimately where traders choose to exit trades that will determine success. Learn about the three types of trading exit strategies here: https://t.co/muYkTNXH7s https://t.co/fSRW0Z8mNQ
  • There are three major forex trading sessions which comprise the 24-hour market: the London session, the US session and the Asian session. Learn about the characteristics of each session here: https://t.co/reRmDe1Ksp https://t.co/RyMqsHehsY
  • RT @GunjanJS: This is pretty wild. Last year, in RECORD year for options, about 30 million contracts traded daily. This year, it’s been mo…
  • Implementing a trading checklist is a vital part of the trading process because it helps traders to stay disciplined, stick to the trading plan, and builds confidence. Learn how to stick to the plan, stay disciplined, and use a checklist here: https://t.co/SQUCCZ9dzS https://t.co/KD6mfkiCaW
  • What are some technical and fundamental factors affecting the equities market? Get your free forecast here: https://t.co/YQG1aaIT8C #DailyFXGuides https://t.co/TEoSjMpMBo
British Pound (GBP) Latest: GBP/USD Stable Ahead of Biden Stimulus Package

British Pound (GBP) Latest: GBP/USD Stable Ahead of Biden Stimulus Package

Martin Essex, MSTA, Analyst

GBP price, news and analysis:

  • GBP/USD, along with most of the financial markets, is unlikely to move far this session ahead of an expected speech by US President-elect Joe Biden on his plans to boost the US economy.
  • A report has suggested that his fiscal stimulus package could be as large as $2 trillion.
  • The markets are also waiting for a speech by Federal Reserve Chair Jerome Powell, listening out for any hints about when the Fed will start tapering its monetary stimulus program.
Advertisement

GBP/USD on hold ahead of Biden and Powell

GBP/USD and the rest of the financial markets are unlikely to move far this session ahead of a possible announcement by US President-elect Joe Biden of his plans to stimulate a US economy ravaged by the coronavirus pandemic. According to CNN, his aides have told their Congressional allies to expect a Covid-19 relief package with roughly a $2 trillion price tag.

In addition, the markets are looking ahead to a speech at 17:30 GMT by Federal Reserve Chair Jerome Powell, watching out for any hints at when the Fed will begin tapering its asset purchases. With no UK data scheduled, these events in the US will likely determine the next move in GBP/USD, which remains in its long-term trend higher.

Here’s my top tip for the first quarter of this year: long GBP/NZD

GBP/USD Price Chart, Daily Timeframe (September 14, 2020 – January 14, 2021)

Latest GBP/USD price chart.

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

GBP Forecast
GBP Forecast
Recommended by Martin Essex, MSTA
Download our fresh Q1 GBP forecast
Get My Guide

More generally, governments across Europe are currently tightening their coronavirus restrictions and the prospect of more stimulus in response to the economic pain caused by the pandemic, along with vaccination programs and rising yields on US Treasury notes and bonds, will likely continue to be the main drivers of the US Dollar and currency pairs such as GBP/USD.

GBP/USD MIXED
Data provided by
of clients are net long. of clients are net short.
Change in Longs Shorts OI
Daily 9% 3% 5%
Weekly -4% 15% 6%
Learn how to use sentiment in your trading strategy
Get My Guide

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