The UK Government U-Turns on Top Tax Rate, GBP/USD Supported
The pair finds stability after last week’s intense price action, as the UK Chancellor confirmed that he will not go ahead with the abolishment of the top tax rate bracket
Forex is an over-the-counter (OTC) marketplace where the currencies of the world are traded. In contrast to other prominent financial centers, forex facilitates trade without a centralized exchange, implementing an exclusively digital platform. Limited barriers of entry, ease of transaction and high market liquidity are its calling cards. Easily the world's largest market, the average daily traded volume in forex dominates all other global marketplaces. For April 2016, daily volume measured more than US$5 trillion in value, according to BIS. Of that amount, trade of major global currencies such as the United States dollar (USD), euro (EUR), Japanese yen (JPY)…
The pair finds stability after last week’s intense price action, as the UK Chancellor confirmed that he will not go ahead with the abolishment of the top tax rate bracket
A bearish turn of the EMAs and stochastic (black ellipses) at this confluence may prove problematic. If the stochastic crosses and heads towards the 20 levels, the pressure will be building downwards. Moreover, if it reaches and maintains (red arrow), GBPUSD will be in danger of another leg down.
The pair runs its seventh straight profitable week, as markets brace for today’s PCE inflation from the United States
Sentiment takes another nosedive today and Wednesday’s relief rally falters, as markets brace for key economic data from the US, later in the day and on Friday
The International Monetary Fund (IMF) issued a statement on Tuesday, criticizing the government’s recent spending plan and the Pound comes renewed pressure today
The pair dropped to fresh twenty year lows on Monday in the aftermath of last week’s hawkish Fed, but reacts higher today, as the greenback shows exhaustion
The bond market has capitulated as yields appreciated. As such, there may be interest in the bond market. If so, this may be the catalyst for the overbought normalisation.
The British Pound took a beating on Friday and extended losses against the greenback, to all-time lows earlier today, but reacts during the European hours
Japanese authorities intervened in the FX market on Thursday to support the Yen, but this may do little to contain the pair's advance, as the BoJ-Fed policy differential is chaotic
The BoE hiked its official bank rate by 50bps to 2.25%. Three of the nine MPC members voted for 75bps, with one member preferring a 25bps move. Furthermore, the central bank expects an 11% inflation rate in October, reduced from 13%. However, the bank statement maintained, "should the outlook suggest more persistent inflationary pressures, including from stronger demand, the Committee will respond forcefully."
Japanese authorities have intervened and defended the yen, stopping a potential capitulation by USDJPY to 150. As a result, selling into the market began near the 145.75 level, pushing the price down to 140.64. This action comes after BoJ's Kuroda reiterated to continue monetary easing, initially sparking a selloff in the yen. Given this, it will be unsurprising if the Japanese Finance Ministry regularly influence price levels over the medium…
Risk Warning: Trading Margin FX/CFDs carries a high level of risk, and may not be suitable for all investors. Leverage can work against you. By trading, you could sustain a total loss of your deposited funds but wholesale clients could sustain losses in excess of deposits.
Exchange: ${getInstrumentData.exchange}
${getInstrumentData.bid} ${getInstrumentData.divCcy} ${getInstrumentData.priceChange} (${getInstrumentData.percentChange}%) ${getInstrumentData.priceChange} (${getInstrumentData.percentChange}%)
Any opinions, news, research, analyses, prices, other information, or links to third-party sites contained on this website are provided on an "as-is" basis, as general market commentary and do not constitute investment advice. The market commentary has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and it is therefore not subject to any prohibition on dealing ahead of dissemination. Although this commentary is not produced by an independent source, FXCM takes all sufficient steps to eliminate or prevent any conflicts of interests arising out of the production and dissemination of this communication. The employees of FXCM commit to acting in the clients' best interests and represent their views without misleading, deceiving, or otherwise impairing the clients' ability to make informed investment decisions. For more information about the FXCM's internal organizational and administrative arrangements for the prevention of conflicts, please refer to the Firms' Managing Conflicts Policy. Please ensure that you read and understand our Full Disclaimer and Liability provision concerning the foregoing Information, which can be accessed here.