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.

Free Trading Guides
EUR/USD
Bullish
Oil - US Crude
Mixed
Wall Street
Bullish
Gold
Bearish
GBP/USD
Mixed
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
USD/JPY
Bullish
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
  • The trio of central banks overseeing the commodity currencies have already cut their main rates to all-time lows. Get your market update from @CVecchioFX here: https://t.co/OSUXrN5P3j https://t.co/3nwDel6e28
  • The tension from March continues to subside, allowing for the $USD to slide to fresh two-month-lows. Get your currencies market update from @JStanleyFX here: https://t.co/bRSRjUqg6Z https://t.co/Q35YpIZEd2
  • López Obrador hopes #USMCA will help tighten trade relationships between the US and Mexico. Get your currencies market update from @HathornSabin here: https://t.co/bZrUKSCGaS https://t.co/MZ7UoiWWRj
  • The $AUD may suffer as relations between Australia and China deteriorate amid dwindling growth prospects. Euro traders will be closely watching progress in talks about a €500b recovery fund proposal. Get your market update from @ZabelinDimitri here: https://t.co/LkEFJViPWY https://t.co/sofO135ElG
  • The US Dollar could rise against #ASEAN currencies such as the Singapore Dollar as US-China tensions seem to escalate. The Indian Rupee is also looking ahead of local 1Q GDP data. Get your ASEAN currencies market update from @ddubrovskyFX here:https://t.co/LkEFJViPWY https://t.co/ZGFaQQ3Hr2
  • The #Euro is the big driver here for DXY as it is 57% of the index. It is rising now and trying to break above the March 27 high at 11147. Get your $EURUSD technical analysis from @PaulRobinsonFX here:https://t.co/6gt3F9LuGP https://t.co/73SaL5AeXD
  • U.S. Market Analyst at https://t.co/JsVsSmefgR, Shain Vernier covers - ✔️ Safe haven assets in volatile markets ✔️ Central banks and governments ✔️ How will commodities trade in a recession Only on Trading Global Markets Decoded #podcast. Tune in here: https://t.co/1UmEzEbwiy https://t.co/EIC9YqfTec
  • Anybody else think that casting directors in movies are some of the most underrated people when it comes to giving a film/series credit?
  • No https://t.co/EoBltaP17k
  • Crude #oilprices may face heightened liquidation pressure as the cycle-sensitive #commodity finds itself under the pressure of resilient resistance and a vulnerable, multi-week rising channel. Get your crude #oil market update from @ZabelinDimitri here: https://t.co/cGPX4qcOH1 https://t.co/0U4JMJVFuf
GBP/USD Traders' Preferred Vehicle on High Risk BoE Decision

GBP/USD Traders' Preferred Vehicle on High Risk BoE Decision

2016-11-03 04:13:00
John Kicklighter, Chief Strategist
Share:

Talking Points:

  • The BoE rate decision due Thursday at 12:00 GMT is this week's fourth major policy meeting
  • Unlike the RBA, BoJ and Fed decisions before it; the UK policy meeting has scope for surprise
  • Constant Brexit fears will bring market response while traders show preference for GBP/USD

Sign up for the BoE Rate Decision live event and see what other live coverage is scheduled on the DailyFX Webinar Calendar.

We have already held our breath through three rate decisions this week - RBA, BoJ and Fed - and all three left the market unfazed. However, we shouldn't grow complacent for the upcoming BoE. Where the Australian, Japanese and US monetary policy groups were looking to keep a steady course with markets fully expecting a steadfast outcome; the Bank of England operates under a different set of assumptions and fears. After the central bank cut rates and introduced its suite of unorthodox monetary policy on August 8th, officials suggested that further easing was likely to follow.

What makes this event truly remarkable though is the market's sensitivity to a constant well of speculation: Brexit. Before the EU referendum signaled the UK's split from the European Union, the BoE issued dire warnings for the local economy and financial system if the 'leave' camp won. The tone didn't change after the fact, and supporters of the movement labeled Governor Carney a scaremonger. Nevertheless, all signs of trouble over the past few months were met with stringent Pound selling. When Carney earlier this week announced he would stay on through the negotiations with the support of Prime Minister Theresa May, the Sterling was heartened. That puts the market in neutral, but it doesn't resolve the importance of and sensitivity to this impending event.

In the rate decision itself, no changes to benchmark or stimulus programs are expected. However, that isn't the only aspect of this event that the market will judge impact on. The Quarterly Inflation Report that accompanies this event will be processed as another high-profile signal on a closely monitored line. Should the BoE hold and lift its expectations for the economy, a relief rally from a discounted currency could be in story. GBP/USD, EUR/GBP and GBP/AUD are well suited to such a development technically. Alternatively, if the fear continues - especially with unexpected easing - a drop in the Sterling will tax an already weak currency; but pairs like GBP/CAD and GBP/JPY can cater to such a scenario. We discuss this event, its scenarios and opportunities in today's Strategy Video.

GBP/USD Traders' Preferred Vehicle on High Risk BoE Decision

To receive John’s analysis directly via email, please SIGN UP HERE

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

DISCLOSURES

News & Analysis at your fingertips.