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Daily Financial Market News

Mon, 20 Nov 2017 16:08:00 GMT

GBP/USD Marches Toward Monthly-High (1.3321) Ahead of BoE Testimony

GBP/USD Marches Toward Monthly-High (1.3321) Ahead of BoE Testimony Search DailyFX Home Rates Charts News Market News Real-Time News Daily Briefings Forecast Market Alerts DailyFX Authors Articles Market News Headlines Ethereum Price Rally Stalls Ahead of Key Resistance Targets U.S. Dollar Begins Test of Key Resistance Zone as Bulls Remain Bashful DXY Index Firms Up, but Still Stuck in Range Technical Analysis Analysis Technical Analyst Picks Support & Resistance Daily Technical Reports Pivot Points Sentiment Articles Algorithmic Trading Technical Analysis Headlines DAX Technical Analysis: Trading in Tight Window of Support & Resistance EUR/GBP Technical Analysis: Move Back Below 0.88 Hinted Ahead ASX 200 Technical Analysis: Retreat Finds Support But It Must Hold 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 U.S. Dollar Begins Test of Key Resistance Zone as Bulls Remain Bashful DailyFX US AM Digest: US Dollar Bobs Back and Forth; Euro Weakens DXY Index Firms Up, but Still Stuck in Range GBP/USD Low High View More Note: Low and High figures are for the trading day. News DXY Index Firms Up, but Still Stuck in Range Asia AM Digest: British Pound Gains on Brexit Breakthrough Hopes GBP/USD Marches Toward Monthly-High (1.3321) Ahead of BoE Testimony USD/JPY Low High View More Note: Low and High figures are for the trading day. News DailyFX US AM Digest: US Dollar Bobs Back and Forth; Euro Weakens DXY Index Firms Up, but Still Stuck in Range DailyFX US AM Digest: Euro Retakes Earlier Losses; Dollar Stable at US Open Gold Low High View More Note: Low and High figures are for the trading day. News DailyFX US AM Digest: US Dollar Bobs Back and Forth; Euro Weakens DXY Index Firms Up, but Still Stuck in Range Technical Analysis for Gold, Silver, Crude Oil, DAX & More Oil Low High View More Note: Low and High figures are for the trading day. News Technical Analysis for Gold, Silver, Crude Oil, DAX & More Crude Oil Prices Eye Inventory Data as Gold Awaits Yellen Speech Gold Prices May Continue Higher as German Coalition Crumbles BITCOIN Low High View More Note: Low and High figures are for the trading day. News Bitcoin Rallys Through $8,200; New Crypto Market Cap Record Bitcoin Soars Then Retreats; Good News Continues Bitcoin Momentum Continues, Hedge Fund Giant Signals Interest View More More Real-Time News Facebook Twitter Youtube Google + GBP/USD Marches Toward Monthly-High (1.3321) Ahead of BoE Testimony by  David Song, Currency Analyst  Central bank policy, economic indicators, and market events. Connect via: Talking Points: - GBP/USD Marches Toward Monthly-High (1.3321) Ahead of BoE Testimony. - USD/JPY Extends Bearish Series; Yellen on Tap Ahead of FOMC Minutes. GBP/USD remains bid coming into the last full-week of November, and the pair appears to be on track to test the monthly-high (1.3321) as it extends the bullish sequence from the previous week. It stands to be an eventful week for the British Pound as Chancellor of the Exchequer Philip Hammond is scheduled to present the updated U.K. budget later this week, but the Parliament testimony with Bank of England (BoE) officials Jon Cunliffe , Ian McCafferty , Michael Saunders and Gertjan Vlieghe may heavily impact the near-term outlook for GBP/USD as the central bank appears to be on course to further normalize monetary policy in 2018. Despite the 7 to 2 split to implement the dovish rate-hike in November, the central bank may follow its current pace of one rate-hike per year as ‘ a majority of MPC members had judged that, if the economy continued to follow a path broadly consistent with the prospect of a continued erosion of slack and a gradual rise in underlying inflationary pressure, some withdrawal of monetary stimulus was likely to be appropriate over the coming months in order to return inflation sustainably to target. ’ As a result, Governor Mark Carney and Co. may continue to prepare U.K. households and businesses for a gradually rise in the benchmark interest rate, with GBP/USD at risk of staging a more meaningful advance if it snaps the range-bound conditions from earlier this month. GBP/USD Daily Chart Keeping a close eye on the near-term hurdle around 1 .3300 (100% expansion) to 1.3320 (38.2% retracement ) as it lines up with the November-high (1.3321), but a break of the monthly opening range will bring the topside targets back on the radar as price and the Relative Strength Index (RSI) exhibit a more bullish behavior. Next region of interest comes in around 1.3370 (78.6% expansion), which sits just below the October-high (1.3402), followed by the Fibonacci overlap around 1.3450 (23.6% retracement) to 1.3460 (50% retracement). Near-term outlook for USD/JPY remains tilted to the downside as both price and the Relative Strength Index (RSI) preserve the bearish formations from earlier this month. Keep in mind, the U.S. economic docket remains fairly light with a majority holiday approaching, and fresh remarks coming out of from the Federal Reserve may ultimately generate a limited market reaction as the central bank is expected to endorse a wait-and-see approach in the first-half of 2018. Even though Chair Janet Yellen is scheduled to speak ahead of the Federal Open Market Committee (FOMC) Minutes, the comments may do little to influence the monetary policy outlook as President Donald Trump nominates Governor Jerome Powell to lead the central bank. With the U.S. Senate Banking Committee scheduled to hold the confirmation hearing on November 28, market participants are likely to put increased emphasis on the upcoming rotation within the FOMC as central bank officials start to trim the longer-run forecast for the benchmark interest rate. In turn, the Fed may ultimately implement a dovish rate-hike in December, and USD/JPY may continue give back the advance from the September-low (107.32) as the central bank runs the risk of completing its hiking-cycle ahead of schedule. USD/JPY Daily Chart Near-term outlook for USD/JPY remains tilted to the downside after snapping the range from earlier this month, with a break of the 200-Day SMA (111.75) raising the risk for a move back towards 111.10 (61.8% expansion) to 111. 30 (50 % retracement) . USD/JPY appears to be testing the former-support zone around 112.30 (61.8% retracement) to 112.80 (38.2% expansion) for resistance as it aligns with the trendline from the monthly-high (114.74). Next downside region of interest comes in around 109.40 (50% retracement) to 110.00 (78.6% expansion) followed by the Fibonacci overlap around 108.30 (61.8% retracement) to 108.40 (100% expansion). Varying market conditions require alternative strategies as trends change. Want a better understanding of the different approaches for trading? Download and review the FREE DailyFX Advance trading guide ! Click Here for the DailyFX Calendar Want More Insight? Sign up & join DailyFX Currency Analyst David Song LIVE for an Opportunity to Cover Key Market Themes Along with Potential Trade Setups. --- 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. 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