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
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
  • Slippage can be a common occurrence in forex trading but is often misunderstood. Understanding how forex slippage occurs can enable a trader to minimize negative slippage, while potentially maximizing positive slippage. Learn about FX slippage here: https://t.co/Blrl0unrdT https://t.co/mIsVJ4zTbB
  • What is your forex trading style? Take the quiz and find out: https://t.co/YY3ePTpzSI https://t.co/hymrumanUY
  • Greed is a natural human emotion that affects individuals to varying degrees. Unfortunately, when viewed in the context of trading, greed has proven to be a hindrance more often than it has assisted traders. Learn how to control greed in trading here: https://t.co/kODPAfs2Iz https://t.co/6dAqxsVfxJ
  • The results of this weekend’s German Federal Election will likely dominate Euro sentiment at the start of the week ahead but after a possible EUR/USD bounce they will have little long-term impact. Get your weekly $EUR forecast from @MartinSEssex here: https://t.co/Xu3ZT7EtrW https://t.co/5VHKn52MaA
  • The Consumer Price Index, better known by the acronym CPI, is an important economic indicator released on a regular basis by major economies to give a timely glimpse into current growth and inflation levels. Learn how to better understand CPI here: https://t.co/nAa0fHq4Np https://t.co/mf9rsmIvaW
  • A currency carry trade involves borrowing a low-yielding currency in order to buy a higher yielding currency in an attempt to profit from the interest rate differential. Find out if the carry trade suits your trading style here: https://t.co/7t4BzmLg8w https://t.co/mYWO0Eta0P
  • Sterling continues to contract into trend extremes and the focus is on a pending breakout in the weeks ahead. Get your weekly $GBP technical forecast from @MBForex here: https://t.co/ZvEMQuFjSs https://t.co/rMmq9cehnY
  • Japanese candlesticks are a popular charting technique used by many traders, and the shooting star candle is no exception. Learn about the shooting star candlestick and how to trade it here: https://t.co/mfwJ0sZLTs https://t.co/tm4k3IVzHr
  • 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/t9FlspUVZz https://t.co/FFMy5O9YoY
  • It’s important for traders to be familiar with FX spreads as they are the primary cost of trading currencies. Understand a pair's spread here: https://t.co/zEEUHZBx7g https://t.co/jZHcyAZ5SU
Euro and Pound Maintain Gains as US Dollar Hits Two-Month Low

Euro and Pound Maintain Gains as US Dollar Hits Two-Month Low

Christopher Vecchio, CFA, Senior Strategist

INTRADAY PERFORMANCE UPDATE: 09:40 GMT

MAJORS

AUD

CAD

CHF

EUR

GBP

JPY

NZD

(vs USD)

+0.53%

+0.23%

-0.02%

+0.01%

+0.08%

0.00%

+0.19%

Dow Jones FXCM Dollar Index (Ticker: USDOLLAR): -0.15% (-1.56% prior 5-days)

ASIA/EUROPE FOREX NEWS WRAP

The US Dollar is in the midst of a six-day losing streak that has seen the world’s reserve currency track to its lowest level since June 20. The downturn, spurred on by a disappointing July US NFP report last Friday, has mainly benefited the Australian Dollar, which is in the midst of its best week in two years.

Aussie strength has accelerated the past two days as swaps markets are only pricing in a 60% chance of another 25-bps cut by year end from the Reserve Bank of Australia, whereas that number was 72% in the wake of the RBA’s cut to 2.50% this Tuesday. Shifting rate expectations, while still technically dovish for the Australian Dollar, can prove to be positive so long as Chinese data continues to stabilize.

Beyond the Aussie, two currencies that saw a dearth of weak economic data in the early part of the year – the British Pound and the Euro – have been riding what has been a wave of positive surprises since late-May. While neither has posted extensive gains today versus the US Dollar, both remain at multi-week highs (the Euro since pre-FOMC in June; the Sterling in seven-weeks).

GBPUSD 1-min Chart: Friday, August 09, 2013 Intraday

Euro_and_Pound_Maintain_Gains_as_US_Dollar_Hits_Two-Month_Low_body_x0000_i1027.png, Euro and Pound Maintain Gains as US Dollar Hits Two-Month Low

With a light North American economic calendar due in several hours, volatility is likely to die out into the end of the week. However, excitement around the European currencies should build early next week as there are several significant events due. Especially in the wake of the Bank of England’s shift in monetary policy this week,the July UK Consumer Price Index report and the June UK labor market reading will have elevated importance.

Read more: Aussie Rebounds on Strong Chinese Trade Data – Is a Bottom in Place?

ECONOMIC CALENDAR – UPCOMING NORTH AMERICAN SESSION

Euro_and_Pound_Maintain_Gains_as_US_Dollar_Hits_Two-Month_Low_body_Picture_1.png, Euro and Pound Maintain Gains as US Dollar Hits Two-Month Low

See the DailyFX Economic Calendar for a full list, timetable, and consensus forecasts for upcoming economic indicators. Want the forecasts to appear right on your charts? Download the DailyFX News App.

TECHNICAL ANALYSIS – CHART OF THE DAY

Euro_and_Pound_Maintain_Gains_as_US_Dollar_Hits_Two-Month_Low_body_x0000_i1029.png, Euro and Pound Maintain Gains as US Dollar Hits Two-Month Low

EURUSD – The rally off of the early-July lows continues to progress as anticipated, with the 100% extension target yet to be achieved from the Symmetrical Triangle consolidation pattern that formed July 11 to July 19. The 100% extension comes in at $1.3444, just above the pre-June FOMC meeting high; resistance should be found in the ‘sandwiched’ region of 1.3415/45.

Accordingly, with the daily RSI showing signs of pending bearish divergence and the daily Slow Stochastic (5,3,3) reaching overbought territory and starting to compress, I am looking for one more new high in the EURUSD near 1.3415/45 at which point I will look to sell for countertrend, near-term pullback.

--- Written by Christopher Vecchio, Currency Analyst

To contact Christopher Vecchio, e-mail cvecchio@dailyfx.com

Follow him on Twitter at @CVecchioFX

To be added to Christopher’s e-mail distribution list, please fill out this form

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

DISCLOSURES