Sterling and FTSE 100 Prices, Charts and Analysis:
- BoE, FOMC and BoJ rate decisions this week.
- House of Commons to vote on the Internal Market Bill.
- FTSE 100 client sentiment mixed to bullish.
This week there are a raft of central bank decision – BoE, FOMC and BoJ – and important data releases that traders must be aware of. In addition, the PM’s Internal Market Bill will be up for discussion and voting in the House of Commons this week with PM Johnson’s 80 seat majority under threat. For all economic data and events, see the DailyFX Calendar.
GBP/USD is discussed in the article above and will choppy pre- and post-central bank rate decisions. Looking at EUR/GBP this will likely reflect ongoing Brexit talks and how the government’s Internal Market Bill is seen by members of the House of Commons and the European Union. The pair broke sharply higher over the past 8-10 days, fueled by a strong Euro and a weak Sterling. The upside remains limited in the short-term between 0.9300 and 0.9325, while prior resistance around 0.9145 now turns to support. The pair are moving out of oversold territory and may see a period of consolidation unless politics turn sour again.
EUR/GBP Daily Price Chart (January – September 14, 2020)
IG client sentiment data shows 25.27% of traders are net-long with the ratio of traders short to long at 2.96 to 1. The number of traders net-long is 1.46% higher than yesterday and 38.08% lower from last week, while the number of traders net-short is 6.34% higher than yesterday and 116.89% higher from last week.We