The EUR/USD pair is making gains, approaching multi-month highs around 1.0960, driven by a weakened USD and Christine Lagarde's somewhat hawkish remarks before the European Parliament. Minor housing data from the U.S., specifically New Home Sales for October, came in below expectations but didn't significantly impact the pair. Lagarde, President of the...
Can the CPI Release Reverse The USD?
2023-09-13 • Updated
The upcoming August inflation data may send mixed signals. The 12-month headline inflation rate is expected to rise to 3.6%, causing concerns for the Biden administration. However, core inflation, which excludes food and energy prices, is projected to decrease to 4.3%, aligning with the Federal Reserve's goals. Past price trends influence both figures, so looking at recent data for a more accurate picture is crucial. In this context, the headline number may show a significant 0.6% increase, driven by higher energy prices. Meanwhile, core inflation is expected to grow steadily by 0.2%, indicating a gradual moderation of inflation.
US Dollar - H4 Timeframe
Currently, the 4-hour timeframe of the US dollar index shows the price reacting away from a pivot zone on the Daily timeframe. Considering that the US Dollar's momentum seems to have slowed down considerably over the past few days, it seems quite clear that the price intends to reverse and go bearish for a while from the current area.
EURUSD - H4 Timeframe
EURUSD, at the moment, may be heading bullish. The current price action is a rejection from a demand zone on the daily timeframe, which has already given off a change-of-character on the 4-hour timeframe. On this basis, my sentiment is bullish unless the price trails below the current lower prior to the release of the CPI data.
GBPUSD - D1 Timeframe
The Daily timeframe of GBPUSD presents the clearest argument for a bullish move I’ve seen so far. Here, we see the 200-period moving average support, the drop-base-rally demand order block, as well as a bullish array of the moving averages, pointing clearly to the likelihood of a bullish impulse from the demand zone. As always, before taking any trades, I will wait for an entry trigger from the lower timeframes.
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Canada's forthcoming Consumer Price Index (CPI) data, set for release on Tuesday, is projected to show a year-on-year decline in inflation to 3.2% for October from the previous 3.8%. This potential inflation dip might offer leeway for the Bank of Canada (BoC) to maintain its overnight rate target at 5.0% in the...
Speculation persists regarding the Bank of Japan's potential departure from negative interest rates, yet the USD/JPY maintains its position within a 150–152 range for seven consecutive sessions. Caution is warranted due to a weaker-than-expected Q3 GDP, a slump in imports, and...
Bitcoin's price remains stagnant despite the Fed's slightly less hawkish tone. In contrast, Bitcoin has outperformed other assets, doubling in price from $16K to nearly $38K this year. Improved fundamentals, including the resolution of Binance concerns...
Hey folks, it’s a wrap to yet another month in the 2023 calendar, and I’m guessing you know what that means - time for another episode in the “What To Trade” series. For December, I will be mapping out trade more cautiously as the market volatility often drops
Gold prices, reaching the highest since May 5, are consolidating as traders await the US PCE Price Index, a key inflation indicator. The upcoming data could impact the Fed's policy, influencing the demand for the US Dollar and providing direction for gold. The Greenback sees some repositioning, recovering modestly ahead of the data risk.