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.



Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
More View more
Real Time News
  • It's #FOMC day and the markets are clearly tuned in. How will markets trade around the policy update? DailyFX's @JohnKicklighter discusses below!
  • 🇺🇸 Existing Home Sales MoM (AUG) Actual: -2% Previous: 2.2%
  • 💶 Consumer Confidence Flash (SEP) Actual: -4 Expected: -5.8 Previous: -5.3
  • Heads Up:🇺🇸 Existing Home Sales MoM (AUG) due at 14:00 GMT (15min) Previous: 2%
  • Heads Up:💶 Consumer Confidence Flash (SEP) due at 14:00 GMT (15min) Expected: -5.8 Previous: -5.3
  • LIVE NOW: Join Technical Strategist @MBForex for his Mid-Week Market Update to review the setups we're tracking into the #Fed!
  • The DAX is coming off the July low after getting pummeled on Monday, narrowly missing a test of the 200-day moving average at 14931. Get your #DAX market update from @PaulRobinsonFX here:
  • $Gold trying to hold higher low support ahead of Fed
  • Mid-Week Market Update Webinar starting in 15mins on DailyFX!
  • Though I tried not to look at markets yesterday, I read quite a bit to track before the Fed. Suggestions that the markets were more confident with Evergrande doesn't seem practical. The 'quiet before the storm' of #FOMC is reasonable
Back on Top: British Pound Surges After 2Q GDP Beats, More Gains Ahead?

Back on Top: British Pound Surges After 2Q GDP Beats, More Gains Ahead?

Christopher Vecchio, CFA, Senior Strategist










(vs USD)








Dow Jones FXCM Dollar Index (Ticker: USDOLLAR): +0.03% (+0.59%prior 5-days)


The US Dollar has seen a bit of a bump the past few days but on Friday, further signs of a growing Europe have the European currencies gunning for top spot. Since late-May, there’s been no shortage of stronger data out of the United Kingdom especially, and today’s latest update showed that the economy grew faster than previously thought in the 2Q’13, at +0.7% y/y versus +0.6 y/y initially reported.

Although the ‘panic’ sentiment regarding emerging markets has dissipated the past two days following the better than expected Chinese manufacturing report, it’s unlikely that the calm remains for long as investors speculate over the Federal Reserve’s decision to taper (or not to) taper QE3 in September.

Given the surge in UK borrowing costs amid the stronger growth data, it’s evident that investors are laughing at the prospect of the Bank of England keeping interest rates low over the next two years. Why? Growth is stronger than expected; inflation remains above the +2.5% threshold; and the Unemployment Rate could hit 7% in the early-1Q’13 if it holds its trajectory.

Considering that the US Dollar has seen a revival this week, the fact that the British Pound is essentially unchanged speaks volumes to the strength of its underlying short-term fundamentals. A look at retail trader sentiment (courtesy of the DailyFX Plus Speculative Sentiment Index (SSI)) shows that positioning remains bearish on GBPUSD; and given the contrarian nature of the index, we should be anticipating further gains ahead.

GBPUSD SSI: May to August 2013

Back_on_Top_British_Pound_Surges_After_2Q_GDP_Beats_More_Gains_Ahead_body_GBPUSDsssi.jpg, Back on Top: British Pound Surges After 2Q GDP Beats, More Gains Ahead?

Read more: Global Growth Fears Quelled After Chinese, Euro-Zone PMIs


Back_on_Top_British_Pound_Surges_After_2Q_GDP_Beats_More_Gains_Ahead_body_x0000_i1028.png, Back on Top: British Pound Surges After 2Q GDP Beats, More Gains Ahead?

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.

--- Written by Christopher Vecchio, Currency Analyst

To contact Christopher Vecchio, e-mail

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.