Economic calendar for the week 16.11.2020 – 22.11.2020

GBP/USD forecast: Pound stays calm

GBP/USD forecast: Pound stays calm

Fundamental Pound forecast for today

Sterling is focused on foreign factors and ignores domestic negative data

The GBP is still moving according to foreign factors because of the lack of important events in the economic calendar and expectations of the virtual gathering of the world’s central bankers in Jackson Hole. Investors pay no attention to the negative factors associated with Brexit, twin deficits (budget deficit and current account deficit), and the first-ever excess of the UK national debt over £2 trillion. Forex analysts suggest that if the euro breaks higher than $1.2 and moves on towards $1.25, the sterling will easily reach $1.35.
The options market is surprisingly stable without any response to Brexit issues. A year ago, the pound volatility will higher than that of the Mexican peso, and the market was shaken. The sterling volatility over the next 3 months is below the average for the last 5 years and slightly above the euro volatility. Taking into account that the EU-UK talks are close to the critical point, the market stability looks surprising. It suggests that either investors are confident in a soon Brexit deal or they do not expect that any of the parties will add uncertainty. However, a 60% likelihood of a Brexit deal doesn’t rule out a 40% chance of a no-deal divorce. It seems that after any failure in the previous negotiations, investors expect a breakthrough in each next round.
According to JP Morgan, a no-deal Brexit will contract the UK GDP by 5.5%, and the UK economy is already in a recession. There are several bearish drivers for the sterling. The twin deficits, the Conservatives’ discontent with the growth of the UK national debt, the second wave of COVID-19 in Europe, and the potentially vulnerable labor market due to the expiration of the financial aid package in October. According to Bloomberg, the programs, which have protected four million jobs should end in October. That could hit the labor market, slow down the GDP in the fourth quarter, and result in a boost of the UK QE by £100 billion.

Dynamics of UK jobs supported by state programs

Source: Bloomberg
So, the pound has many flaws. However, it has caught the tailwinds and responds to the increase in the global risk appetite and the Fed’s willingness to weaken the US dollar through the average inflation targeting. Nonetheless, Jerome Powell may not announce such a plan in Jackson Hole. Furthermore, the S&P500 may not be close to the all-time highs for a long time. According to the majority of 200 experts surveyed by Reuters, global stock indexes at the end of 2020 are likely to be lower than the levels hit in February, which means a correction down from the current levels.

Dynamics of GBP/USD and S&P 500

Source: Trading Economics
In my opinion, investors ignore the UK's negative domestic factors because they are focused on Powell’s upcoming speech. If he announces the Fed’s average inflation targeting, the GBP/USD may break through the August highs and continue rallying up to 1.337 and 1.35. Otherwise, the sterling could go down below the support at 1.315.
For more information follow the link to the website of the LiteForex
submitted by Maxvelgus to Finance_analytics [link] [comments]

Economic Calendar  Trading Terms - YouTube Forex Economic calendar: GBP Services PMI (Dec) - YouTube Weekly Forex Forecast (12/19 Oct) EurUsd, GbpUsd AudUsd ... How to use The Forex Factory Economic Calendar - YouTube Why Using an Economic Calendar When Day Trading is So ... Weekly Forex Forecast: (19/26 Oct) DXY, EurUsd, GbpUsd ... EUR/USD and GBP/USD Forecast February 4, 2020 How to read Economic Celender in Forex Trading Urdu Hindi EUR/USD and GBP/USD Forecast June 19, 2020

Trading on key Forex news: next week we are expecting the publication of important macro statistics from China, the US, Great Britain, Canada, Australia, as well as statements by the heads of the central banks of Australia, Great Britain, and Canada. DREAM DRAW. LiteForex raffles a dream house, a brand new SUV car, and 18 super gadgets . Learn more. LiteForex Dream Draw! Prize fund: 350 000 ... Economic Calendar.'s Economic Calendar is your trading companion to avoid event risk. Event risk is anything that will move markets, but that you can't see coming. Use our economic calendar to inform yourself of important news events and economic data reports that may shake up the financial markets and impact your trading. Don’t ... Forex Update: As of 08:00, these are your best and worst performers based on the London trading schedule: 🇬🇧GBP: 0.31% 🇦🇺AUD: 0.17% 🇪🇺EUR: 0.08% 🇨🇭CHF: -0.02% 🇨🇦CAD ... Extensive global economic calendar for December 14, 2020 providing dates, times and results of upcoming and past reports that impact world economies. Designed with an eye for the needs of online forex trading, but of interest to a wide range of speculators, traders, and others interested in global economic conditions. Sterling Forecast: Cable Caught by Uptrend Resistance- GBP/USD Levels 2020-11-12 18:00:00 EUR/GBP and GBP/USD Unfazed by Outdated Record Q3 GDP Growth GBP/USD Outlook: Break below 1.2880-70 to pave the way for further weakness. The GBP/USD pair gained some positive traction on Friday and moved away from two-week lows touched in the previous ... Extensive global economic calendar providing dates, times and results of upcoming and past reports that impact world economies. Designed with an eye for the needs of online forex trading, but of interest to a wide range of speculators, traders, and others interested in global economic conditions.

[index] [15366] [1960] [24955] [19990] [5905] [16604] [3950] [20137] [22546] [6285]

Economic Calendar Trading Terms - YouTube

🔴 Live Forex Signals Forecast EURUSD & USD JPY & GBPUSD H1 & M5 Forex Signals 32 watching Live now EUR/USD and GBP/USD Forecast July 27, 2020 - Duration: 1:07. Forex Factory is one of the most popular sites for forex traders online today. Its calendar provides great information for all types of traders. Using it wil... How to read Economic Celender in Forex Trading Related Articals Forex News time,Find Up Trend ur Down Trend,Economic clelender events,Live forex sell buy sig... Markets ended the week with some choppy/sideways consolidation, which looks likely to continue in the coming days for must FX pairs and commodities. The Aust... How The Economic Machine Works by Ray Dalio - Duration: 31 ... EUR/USD and GBP/USD Forecast February 5, 2018 - Duration: 1:07. DailyForex 587 views. 1:07. WEEK AHEAD COMMODITY REPORT: Gold, Silver ... Why you must use a trading calendar when daytrading? PLEASE LIKE AND SHARE THIS VIDEO ... Read below to find out how you can trade risk events on the economic calendar profitably: -----In this video we’ll show you a strategy for trading news events on the Forex economic calendar that ... Try watching this video on, or enable JavaScript if it is disabled in your browser. Risk sentiment is positive and further upside progress for stockmarkets and some downside pressure fo rthe US$ seems to lie ahead. Our weekly outlook and for... The Economic Calendar is the list of events that influence the largest global economies and their currencies. When new traders enter the financial world they...