- GBPUSD seen weak below 1.6656 into 1.6555.
- GBPJPY has best reversal potential if at all.
- Have a bullish (or bearish) bias on the British Pound, but don’t know which pair to use? Use a GBP currency basket.
The British Pound gapped higher to start the week after Bank of England Governor Mark Carney issued a hawkish statement over the weekend, but those relatively higher prices in the GBP-crosses are nothing more than a memory at this point. Governor Carney's hawkish tone may be in check after the release of the July UK Consumer Price Index.
Governor Carney's hawkish tone was formed around the idea that the BoE would raise interest rates whether or not real wage growth was positive, should other sectors of the economy warrant such action, good (labor market tightness) or bad (erhm, looking at you, housing).
However, with UK consumer prices sliding back faster than anticipated, this may be a sign that consumers, faced with diminished purchasing power, have reined in spending. Lower inflation would suggest that demand is outstripping supply at a weaker rate; growth may be dampened.
GBPUSD is at an important crossroads then near $1.6656 following the UK CPI report, as the July US Consumer Price Index will be released today at 12:30 GMT. Several of the GBP-crosses are on the ropes this morning, aside from GBPUSD: GBPCHF, EURGBP, and GBPJPY.
See the video above for technical considerations for the GBP-complex and what we'll be looking to in the next few days as the next GBP downswing may be looming.
Read more: 5 Reasons EUR/USD is Coiling - GBP/USD Waits for UK, US CPIs on Tues
Forex FundamentalsAs the world's second largest economy, China's challenge to America’s dominance includes a push to make the yuan (RMB), the world’s reserve currency. Whether it can do that now is unclear.
EconomicsOne particular barrier to trade that has received much attention of late and caused delays in negotiations of the TPP is exchange-rate manipulation, by which a country artificially devalues its ...
ForexBreaking news moves forex markets. Here are the top U.S. sites for tracking forex news.
InvestingAccess to financial information has grown with the expansion of digital news. Bloomberg and Thomson Reuters lead the pack, claiming a majority of the business information market.
EconomicsSouth Korea is the latest country to cut interest rates in an attempt to stimulate economic growth.
Forex EducationPeer-to-peer (P2P) currency exchange networks offer a viable and cheaper alternative for buying and selling currencies.
ForexHere is a simple breakdown of how to open an offshore forex account for US-based users, including legal requirements.
EntrepreneurshipA brief overview of the top apps that help forex traders with on time information, charts and more.
Investing BasicsVirtual currency is probably here to stay, but what about Bitcoin specifically? Does it have a first-to-market advantage? What are the risks involved?
Forex NewsWhen it comes to forex, some types of "fixes" are legal. But some really aren't.
- No results found.