logo
  • New York:
  • London:
  • Delhi:
  • Tokyo:
  • Sydney:
  •  

Daily Financial Market News

Mon, 22 Jan 2018 15:52:00 GMT

Subdued U.K. Wage Growth to Rattle GBP/USD Rate Rally

Subdued U.K. Wage Growth to Rattle GBP/USD Rate Rally Search DailyFX Home Rates Charts News Market News Real-Time News Daily Briefings Forecast Market Alerts DailyFX Authors Articles Market News Headlines Traders Urged to Respond to Proposed European Rule Changes Euro May Shrug Off Soft PMI Data, Looking Ahead to ECB Meeting AUD/USD Rally Approaching Initial Resistance Targets Technical Analysis Analysis Technical Analyst Picks Support & Resistance Daily Technical Reports Pivot Points Sentiment Articles Algorithmic Trading Technical Analysis Headlines FTSE Technical Outlook – Consolidation Period Would Do Some Good Japanese Yen Technical Analysis: USD/JPY Wilts, 107 Could Beckon As Dollar Weakness Presists, Yen May Rally Calendars Economic Calendar Webinar Calendar Central Bank Rates Dividend Calendar Forex Economic Calendar Time Event Actual Forecast Rates Charts Education Education Beginner Intermediate Advanced Expert Free Trading Guides DAILYFX PLUS × Get the best parts of DailyFX.com in the new DailyFX App Download × Join Us For Our Free Webinars Get daily market analysis from our in-house experts Choose from more than 25 webinars each week Put your questions to our experts in real-time Q&As Register now Want to hold off on improving your trading? Click here to dismiss. × Get Your Free Trading Guides With your broad range of free expert guides, you'll explore: The basics of forex trading and how to develop your startegy Foundational knowledge to help you develop an edge in the market What's ahead for major FX pairs, Gold, Oil and more Download a Free Guide Want to hold off on improving your trading? Click here to dismiss. EUR/USD Low High View More Note: Low and High figures are for the trading day. News Euro May Shrug Off Soft PMI Data, Looking Ahead to ECB Meeting USD & JPY Get Haven Bids as Trump Protectionism Returns EUR/USD Boosted as German Economic Sentiment Soars GBP/USD Low High View More Note: Low and High figures are for the trading day. News Investor Sentiment Remains Buoyant as US Government Shutdown Ends USD & JPY Get Haven Bids as Trump Protectionism Returns A Weekly Technical Perspective on GBP/USD, USD/CAD, USD/CHF USD/JPY Low High View More Note: Low and High figures are for the trading day. News USD/JPY Elliott Wave Analysis Points Towards 107 Japanese Yen Technical Analysis: USD/JPY Wilts, 107 Could Beckon Japanese Yen Shrugs at Strong Local Data After Dovish BOJ Gold Low High View More Note: Low and High figures are for the trading day. News Trading Outlook for Gold & Silver, Crude Oil, Copper, DAX & More Gold Prices Rise Even as US Government Shutdown Ends Gold Awaits Dollar’s Lead Before Deciding Breakout or Reversal Oil Low High View More Note: Low and High figures are for the trading day. News Gold Prices Rise Even as US Government Shutdown Ends Weekly Technical Outlook- USD Warning Signs of Stretched Price Action Crude Oil Prices Struggle as Gold Eyes US Government Shutdown BITCOIN Low High View More Note: Low and High figures are for the trading day. News Bitcoin, Ethereum, Ripple; Technical Support Still Needed Bitcoin Shifts to a Mixed Trading Bias Bitcoin, Ethereum, Ripple Prices Crumble, Market Capitalization Slashed View More More Real-Time News Facebook Twitter Youtube Google + Subdued U.K. Wage Growth to Rattle GBP/USD Rate Rally by  David Song, Currency Analyst  Central bank policy, economic indicators, and market events. Connect via: FX Talking Points: - Subdued U.K. Wage Growth to Rattle GBP/USD Rate Rally. - USD/JPY Bearish Sequence in Focus Ahead of BoJ Meeting. Fresh developments coming out of the U.K. may rattle the near-term rally in GBP/USD should the data prints dampen the threat for above-target inflation. U.K. Average Weekly Earnings are projected to hold steady at an annualized 2.5% in November as Employment is expected to narrow another 12K during the same period, and the British Pound may face headwinds ahead of the advanced Gross Domestic Product (GDP) report due out later this week as the growth rate is anticipated to slow to 1.4% per annum from 1.7% in the third-quarter of 2017. A slew of dismal developments may not only yield a bearish reaction but may also lead to a near-term correction in GBP/USD as it dampens bets for an imminent Bank of England (BoE) rate-hike. Its sees as though Governor Mark Carney and Co. will continue to normalize monetary policy in 2018 as ‘the steady erosion of slack over the past year or so had reduced the degree to which it was appropriate for the MPC to accommodate an extended period of inflation above the target,’ but signs of easing price pressures may encourage the committee to adopt a less-hawkish outlook for monetary policy as ‘inflation was likely to be close to its peak, and would decline towards the 2% target in the medium term.’ Nevertheless, the near-term outlook for GBP/USD remains constructive as the pair breaks out of a wedge formation, with the pair at risk for a squeeze higher as long as the Relative Strength Index (RSI) holds in overbought territory for the first time since September. Want to know what other currency pairs the DailyFX team is watching? Download and review the Top Trading Opportunities for 2018. GBP/USD Daily Chart Interested in trading? Review the ‘ Traits of a Successful Trader’ series on how to effectively use leverage along with other best practices that any trader can follow. Topside targets remain on the radar as GBP/USD wards off the risk for a double-top , with a break/close above the 1.3970 (50% expansion) hurdle opening up the next region of interest around the 1.4100 (100% expansion) handle. Keeping a close eye on the Relative Strength Index (RSI) as it extends the bullish formation from late last year and continues to trade in overbought territory; need a move below 70 in the oscillator to warn of a near-term pullback in the pound-dollar exchange rate. USD/JPY fills the gap from the weekly open, but recent price action keeps the near-term outlook tilted to the downside as the pair extends the string of lower-highs from the previous week. Market participants may largely ignore the Bank of Japan (BoJ) meeting as Governor Haruhiko Kuroda and Co. stick to the negative interest rate policy (NIRP), and the U.S. government shutdown may grab increased attention the threat for a prolonged standoff dampens the outlook for growth and inflation. As a result, USD/JPY may exhibit a more bearish behavior ahead of the Federal Open Market Committee (FOMC) interest rate decision on January 31 as the central bank is already expected to keep the benchmark interest rate on hold, and the break of the descending triangle may cultivate a more meaningful depreciation in the dollar-yen exchange rate especially as the Relative Strength Index (RSI) extends the bearish formation carried over from the summer months. Keep in mind, the FOMC appears to be on course to implement higher borrowing-costs over the coming months as ‘m any participants expected the proposed cuts in personal taxes to provide some boost to consumer spending ,’ but the central bank appears reluctant to follow a more aggressive hiking-cycle especially as ‘ some participants observed that there was a possibility that inflation might stay below the objective for longer than they currently expected. ’ USD/JPY Daily Chart Interested in having a broader discussion on current market themes? Sign up and join DailyFX Currency Analyst David Song LIVE for an opportunity to discuss potential trade setups! Downside targets remain on the radar for USD/JPY following the failed attempt to push back above the 111.10 (61.8% expansion) to 111.60 (38.2% retracement) region , with a break of the monthly-low (110.19) raising the risk for a move towards the 109.40 (50% retracement) to 110.00 (78.6% expansion) area. Next downside hurdle comes in around 108.30 (61.8% retracement) to 108.40 (100% expansion) followed by the 2017-low (107.32), which sits just above the Fibonacci overlap around 106.70 (38.2% retracement) to 107.20 (61.8% retracement). Closely monitoring the Relative Strength Index (RSI) as it falls back towards oversold territory, with a move below 30 raising the risk for a larger decline in USD/JPY as the bearish momentum gathers pace. Click Here for the DailyFX Calendar --- Written by David Song, Currency Analyst To contact David, e-mail dsong@dailyfx.com. Follow me on Twitter at @DavidJSong. To be added to David's e-mail distribution list, please fol l ow this link . DailyFX provides forex news and technical analysis on the trends that influence the global currency markets. Related Articles Previous Articles From daily dollar Related Prev Articles   Traders Urged to Respond to Proposed European Rule Changes   Euro May Shrug Off Soft PMI Data, Looking Ahead to ECB Meeting   AUD/USD Rally Approaching Initial Resistance Targets   AUD/USD Rate Rally Stalls Ahead of 2017-High; RSI Sell Signal on Tap   USD & JPY Get Haven Bids as Trump Protectionism Returns   Oil Prices Risk Further Losses as RSI Slips from Overbought Territory   EUR/USD Initiates Bearish Sequence, RSI Flashes Textbook Sell Signal   EUR/USD Rally Fizzles as ECB Officials Dispute Euro Rate Strength   USD/JPY Risks Larger Rebound on Growing Bets for March Fed Rate-Hike   EUR/USD Rate Negates Risk for Double-Top Ahead of More ECB Rhetoric Advertisement Upcoming Events Economic Event Importance Actual - Forecast - Previous Importance Actual - Forecast - Previous Forex Economic Calendar A:  Actual   F:  Forecast     P:  Previous NEWS Articles Real Time News Daily Briefings Forecasts DailyFX Authors TECHNICAL ANALYSIS Articles Analyst Picks Support & Resistance Pivot Points Sentiment CALENDAR Economic Calendar Webinar Calendar Central Bank Rates Dividend Calendar EDUCATION Forex Trading University Trading Guide DAILYFX PLUS RATES CHARTS RSS Past performance is no indication of future results. DailyFX is the news and education website of IG Group. About Us  |   Contact Us  |   Cookies  |   Risk Warning  |   Privacy Policy  |   T & C

<< Back to news





Trading Room Signals Brokers Watch Videos