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Trade Forex Fundamental News GBP USD

Forex Fundamental

Fundamental analysis in forex seeks primarily to forecast movement of currency in countries comparing monetary policy, interest rates and government policies with that country’s own business cycles. Each change in exchange rate can result as either a currency was weakened or one was weakened by another currency. Technical analysis consists of the study of volumes and price levels and pattern patterns of currencies for the forecasting of future currency moves predicated on the assumption that certain patterns in charts can forecast, more often than not, exchange rates. Forex traders generally tend to be anxious about the future of all trade countries, therefore forecasts require traders to know the major reports for every country that are reported here.

News trading is a very popular and commonly uses strategy.  And the news is the main resource of fundamental analysis. GBP Usd news is a very important thing for fundamental analysis and news trading. Which news items are very useful for traditionally and currently of Gbp Usd,   we can try to give a summary about this


What is GBP Usd?

GBP (Great Britain pound) is the abbreviation of the currency “POUND STERLING”. The Pound sterling is the official currency of the United Kingdom. In the British overseas territory of South Georgia, the south sandwich island, and British Antarctic Territory, British crown dependencies the Isle of Man, and the Channel Island use the Pound starling as official currency. The African country Zimbabwe also uses the Pound as official currency. Some other currencies are pegged to pound starling – Falkland Islands pound, Gibraltar pound, Saint Helenian pound, Jersey pound, Guernsey pound, Manx pound, Scotland notes, Northern Ireland’s notes. The British pound is the oldest currency in the world, which has been used till now. The pound was first created as currency in the year 760. In the year 1707, Scotland and the United kingdom united to form a single country and the pound became the official currency of the U.K. The pound was first introduced as a silver coin. In 1663 the pound also started using as a gold coin. The first paper note was supplied in 1694 after establishing the BANK OF ENGLAND as a central bank. In 1861 the Pound value started as the Gold standard. In the year 1914 at the time of the First World War, the Gold standard was abandoned and Treasury notes became LEGAL TENDER. In 1940 the Pound was pegged with the US dollar. But the Pound became a free-floating currency in the year of 1971. Despite the UK being a member of the EU, it declined to adopt the Euro as it’s the official currency in the year 1999.

The Pound is divided into – I POUND with 100 penny (plural of Pence). The GBP USD is the fourth-largest volume traded pair in the forex market. It traded as 13% of total volume in the forex market. The Pound has a neck named “CABLE”.

Important GBP USD news

We want to discuss some very common and regular publishing forex news of GBP USD pairs. Which are released every month usually in the economic calendar by all forex news service providers?


Bank of England (BOE) AND monetary policy committee (MPC) related news/ interest rate news/asset purchases news

The Bank of England is the Central bank of the UK. Like all other Central banks in the world the Bank of England owner, the supplier, and driving power of GBP currency. By applying various ways BOE controls and influences the GBP Exchange rate. In order to fundamental analysis of GBP currency you must have to be concerned about the news of- official bank rate, monetary policy report, monetary policy summary, asset purchase facility, MPC asset purchase facility votes, MPC official bank rate votes, etc.

To make the supply-demand high –low of any currency the monetary policy is the main influencing tool. The main objective view of the Bank of England monetary policy is the same thing. So monetary policy related to any news makes high volatility in GBP USD pairs. It can create any new trend and changes the current trend of GBP USD pairs. The Bank rate is vital Gbp Usd news. The “BANK RATE” is the interest rate that the BOE pays to commercial banks for holding money with it. In the news, it’s sometimes called the “Bank of England base rate”. The BOE makes monetary policy tightening by interest high and makes monetary policy lose by interest rate low. High-interest rate makes less availability of currency and it makes price become high and also low-interest-rate provides more supply of a currency and it makes the price become low.

The Bank of England’s “MONETARY POLICY COMMITTEE” (MPC) decides what monetary policy action to take. The Monetary Committee (MPC) is made by nine members with the Governor. The MPC announces its policy eight times a year (after every six weeks). The MPC members have been joining in the voting system for Bank rate and asset purchase facilities. Decisions are taken as the result of a vote-winning majority. So the MPC monetarily activities news are high-impact forex news for GBP USD pairs.

The Bank of England has been doing asset purchase or quantitative easing (QE) programs to inject money directly into the country’s economy.BOE operates this asset purchase facility to buy government debt like Bonds from financial institutes. It is holding asset purchase facility as per last 05 November declaration is, 895 billion.  So it is great news for GBP USD. Because if more assets purchase more inject money and for more supply the money the Gbp price can become low. Or asset purchase facility reduction means less supply of money and Gbp price can become high for high demand.

See the picture of mentioned topics-


We have given an example of GBP USD news in the Economic calendar which is releasing regularly.


Bank of England Governor speak

The BOE Governor speaks is the high Gbp Usd news. Regularly the governor meets a press conference on the eve of a monetary decision after every six weeks. He explained the monetary policy which has taken place. He also commands the Economic condition of the country. Except this, the Governor speaks on any occasions are considered high impact forex and Gbp Usd news. Because the governor can indicate any monetary policy-related thing. Like as, interest rate high-low, assets purchase increase or decrease, economic condition good-bad, etc. And it can make GBP USD pair price movement.


Brexit, Brexit deal, Brexit trade deal, a withdrawal agreement

Brexit is the withdrawal of the UK from the European Union. In 2016, a referendum was held for Brexit and 52% of people have given a vote in favor of Brexit. But just being won in the Brexit referendum the GBP USD pair has gotten tremendous pressure and the pair has fallen very low. Till now Brexit is not implementing as fully. Many geopolitical and economical situations have been arising, like the Brexit trade deal, Brexit withdrawal agreement, no-deal Brexit, etc. Brexit is the now main geopolitical concept of the UK. Which has been influencing the British government, politics, and economy. So look upon any Brexit-related news. It is very important for forex and GBPUSD news.


Consumer price index (CPI), inflation letter

 Bank of England is fully responsible for keeping inflation stable. The government has set a target of keeping inflation at 2%. Inflation is a measure of how much the price of goods and services has gone up in a certain time. The Bank of England always tries to keep the government inflation target. But when the inflation crosses the target 1% up or down then the Bank of England Governor must be mandatory to tell the Government about the inflation target miss and seeks permission on what he /she does next. For this, the Governor Writes an open letter to the Chancellor it calls, “Inflation letter”. So it is big Gbp Usd news because the BOE makes the monetary policy to keep a fully targeted inflation rate. For this if necessary it changes interest rate and asset purchases facility. The consumer price index (CPI) is the only thing that indicates inflation. So CPI is an important news item.


There are some important GBP USD news is also you have to consider for fundamental analysis and news trading with this pair. Like as- Gross domestic products (GDP),    claimant count change (A employment data), Employment/unemployment rate, service pmi, manufacturing pmi, Uk parliament election,etc.You must observe  the US dollar site news as the same GBP for trading in this pair.