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
  • Gold prices failed to retake the uptrend from the May 2019, March 2020, and March 2021 lows, and are nearing their monthly low. Get your $XAUUSD market update from @CVecchioFX here:https://t.co/qkCdUJFtc2 https://t.co/ldbYm2U0vC
  • The US Dollar continues to push higher against ASEAN currencies after the FOMC rate decision. This leaves the USD/SGD, USD/THB, USD/PHP and USD/IDR outlook mostly tilted higher. Get your market update from @ddubrovskyFX here:https://t.co/zn56iTXcpk https://t.co/NmQzIm39lj
  • Latest update on #Evergrande focusing on the Australian Dollar "Australian Dollar Eyes Evergrande as USD Bondholders Still Await Interest Payments" #AUD $AUDUSD https://www.dailyfx.com/forex/market_alert/2021/09/24/Australian-Dollar-Eyes-Evergrande-as-USD-Bondholders-Still-Await-Interest-Payments.html?CHID=9&QPID=917702&utm_source=Twitter&utm_medium=Dubrovsky&utm_campaign=twr https://t.co/AAU8nMn0ou
  • 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/t9Flsqcxo9 https://t.co/3bjMHrUZRJ
  • 🇹🇭 Balance of Trade (AUG) Actual: $-1.22B Expected: $0.97B Previous: $0.18B https://www.dailyfx.com/economic-calendar#2021-09-24
  • Heads Up:🇹🇭 Balance of Trade (AUG) due at 03:30 GMT (15min) Actual: $-1.22B Expected: $0.97B Previous: $0.18B https://www.dailyfx.com/economic-calendar#2021-09-24
  • The Spinning Top candlestick pattern forms part of the vast Japanese candlestick repertoire with its own distinct features. Gain a better understanding of the spinning top candlestick here: https://t.co/DWm7cC4v7H https://t.co/uhBNvCTHrW
  • Evergrande USD bondholders say have yet to receive interest due Thursday -BBG
  • The US Dollar seems to be back on the offensive against its major counterparts, pressuring EUR/USD and NZD/USD lower as USD/JPY consolidates. USD/CHF surges past key resistance. Get your market update from @ddubrovskyFX here:https://t.co/MrLGSp7FYa https://t.co/J0vSWHaADc
  • Gold prices gain as potential systemic risks out of China's Evergrande Group roil broader markets. Meanwhile, iron ore is ticking higher after a big drop on Monday as China steps up steelmaking curbs. Get your market update from @FxWestwater here:https://t.co/l4kAWDrr7M https://t.co/nmP0MX8LGM
Bank of England says Negative Rates Are Not Coming, GBP/USD Jumps

Bank of England says Negative Rates Are Not Coming, GBP/USD Jumps

Justin McQueen, Strategist

GBP/USD Price Analysis & News

  • BoE Says Negative Rates Are Not Coming, GBP/USD Jumps
  • BoE optimistic on Growth Outlook
  • Inflation expected to rise sharply towards 2% in Spring

BOTTOM LINE: Bank of England left policy unchanged as expected, with the bank rate remaining at 0.1% and APF target at £895bln. The main focus had been on its consultation with the PRA over the feasibility of negative rates, in which the BoE stated that while it is appropriate to get ready for negative rates if needed, they do not intend to signal that this policy tool will be coming in the foreseeable future.

Growth: The BoE stated that while Q1 growth will likely see a larger hit than in Q4, the economic damage will be less severe than the first lockdown in March 2020.

Inflation: MPC sees inflation rising sharply towards 2% in Spring as base effects and the impact of the unwind in VAT reductions underpin.

MPC Forecast: Feb 21 vs Nov 20

Growth Forecast

End 2021: UK GDP 5% (downgraded from 7.25%)

End 2022: UK GDP 7.25% (upgraded from 6.25%)

End 2023: UK GDP 1.25% (downgraded from 1.75%)

CPI Forecast

End 2021: UK CPI at 2.0% (unchanged)

End 2022: UK CPI at 2.25% (upgraded from 2.0%)

End 2023: UK CPI at 2.0% (unchanged)

GBP Reaction: The initial move had been in line with what option markets had implied with GBP rising from 1.3569 to 1.3642. The rise stemming from the BoE optimistic judgement on growth, alongside playing the possibility of taking interest rates negative. Similarly, EUR/GBP made a firm break below the 0.8800 handle.

GBP/USD Chart: Intra-day Time Frame

Bank of England says Negative Rates Are Not Coming, GBP/USD Jumps

Source: Refinitiv

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES