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
GBP/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
More View more
Real Time News
  • (Gold Briefing) Gold Price Outlook Turns to UofM Sentiment as US Dollar, Treasury Yields Rally #Gold #XAUUSD #USD #Bonds https://www.dailyfx.com/forex/fundamental/daily_briefing/daily_pieces/commodities/2021/09/17/Gold-Price-Outlook-Turns-to-UofM-Sentiment-as-US-Dollar-Treasury-Yields-Rally.html?CHID=9&QPID=917702&utm_source=Twitter&utm_medium=Dubrovsky&utm_campaign=twr https://t.co/p7VdFesUb1
  • 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/XPtqedJjyk
  • 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/m6XH4n43UQ
  • The Australian Dollar has retraced from August lows when looking at AUD/JPY and AUD/CAD. However, the AUD/NZD downtrend is intact, will a reversal there appear as well? Find out: https://t.co/8LmgqLLGJO https://t.co/yy64N01p2b
  • PBOC injects net 90 billion Yuan in open market operations - Yuan reference rate set at 6.4526 per USD - BBG
  • Australia to trial home quarantine for arrivals who are vaccinated - BBG
  • The S&P 500, Dow Jones and DAX 30 could be at risk of falling as retail traders continue increasing their upside exposure in these indices. What are the key technical levels to watch for? Find out from @ddubrovskyFX here:https://t.co/OJByiwIppr https://t.co/moWS7rqAQG
  • RT @FxWestwater: New Zealand Dollar Outlook: $NZDUSD Drops on US Dollar Bids, Wall Street Losses Link: https://www.dailyfx.com/forex/fundamental/daily_briefing/daily_pieces/asia_am_briefing/2021/09/16/New-Zealand-Dollar-Outlook-NZDUSD-Drops-on-US-Dollar-Bids-Wall-Street-Losses.html?CHID=9&QPID=917708&utm_source=Twitter&utm_medium=Westwater&utm_campaign=twr https://t.c…
  • The US Dollar continues to hold its ground against most ASEAN currencies as recent downtrends lose momentum. What is the road ahead for USD/SGD, USD/THB, USD/PHP and USD/IDR? Find out from @ddubrovskyFX here:https://t.co/UcleaZEAaW https://t.co/dRD22S792t
  • 🇳🇿 Business NZ PMI (AUG) Actual: 40.1 Previous: 62.6 https://www.dailyfx.com/economic-calendar#2021-09-16
GBP/USD Breaking Lower, Lift Likely if Bank of England Rules Out NIRP

GBP/USD Breaking Lower, Lift Likely if Bank of England Rules Out NIRP

Martin Essex, MSTA, Analyst

GBP price, Bank of England, news and analysis:

  • GBP/USD is looking technically weak but a near-term pause for breath is likely.
  • That could be triggered by a Bank of England announcement that its monetary policy committee has ruled out a negative interest rate policy (NIRP) in the UK.
Advertisement

GBP/USD to steady after recent losses

GBP/USD has broken to the downside from a rising channel on the charts that has been in place since early last month, suggesting further losses to come. However, as the section at the bottom of the chart below shows, the RSI is now close to the 30 level that points to an oversold market, implying that at least a pause for breath is now likely, and perhaps a near-term rally.

GBP/USD Price Chart, 30-Minute Timeframe (January 19 – February 4, 2021)

Latest GBP/USD price chart.

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

Looking for an analysis of EUR/GBP? We have one here

The nudge that GBP/USD needs to steady after its recent falls could come from today’s announcements on interest rates and the UK economy from the Bank of England’s monetary policy committee and the Bank’s Governor Andrew Bailey.

The BoE will almost certainly keep Bank Rate at 0.1% but it has been consulting on the feasibility of a negative interest rate policy and the results are due today. Bailey may well argue that while NIRP is possible, more QE to boost activity is less risky. Moreover,while neither a rate cut nor more QE can be ruled out in future, and NIRP should not be ruled out as a policy tool, Bailey is not yet ready to move on monetary policy.

Ruling out NIRP for now would likely lead to a near-term bounce in GBP/USD, especially if the monetary policy report accompanying the MPC announcements points to the success of the coronavirus vaccine rollout in the UK. That has taken the pressure off the BoE to act now and indeed if the vaccination program is followed by an economic recovery the brighter outlook would point to no more rate cuts this cycle.

The announcements are due at 1200 GMT and Bailey’s press conference will begin at 1230.

DailyFX calendar

Source: DailyFX calendar

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