ONLINE FOREX BROKER
2019-11-11 • Updated
The British pound is hovering around key resistance line at 1.2495 being almost intact after the UK labor market report. The data was a mixed bag with jobless claims rising to the record 25.5K unseen from 2011, steady unemployment rate and upbeat wages.
Yesterday, GBP/USD rose to its monthly high on the better-than-expected inflation figures that came out of the UK. Many analysts believe that consumer prices will continue rising thanks to weak pound and surging oil prices. However, the heightened inflation rate will unlikely push the Bank of England to tighten its monetary policy. BoE’s officials said at their last meeting that they won’t be in rush to raise interest rates in the near-term future. It seems that they are prepared to tolerate inflation above the 2% target. So, we don’t expect them undertaking any measures until inflation hits at least 3%.
There are plenty of news on the Brexit front. EU members mainly backed the wording contained in draft negotiating guidelines written by European Union President Donald Tusk after Theresa May formally notified the European officials about the UK’s intentions to leave the union. The formal approval of the guidelines will be delivered at the summit in Brussels on April 29. But even after the release of the EU negotiating stance, the talks on the EU-UK future trade relationships will probably start after elections in France and then Germany. This would offer the British pound a short respite to regain its value in the near-term future.
The technical outlook for GBP/USD after the pair broke the range of strong resistances at 1.2463 (the diagonal trendline and 100-H4 MA), 1.2495 (the upper border of Ichimoku cloud on H4 timeframe) is bullish. There is a room for a further upsurge to 1.2555 (April 3 high). On the downside, the immediate supports can be found at 1.2433, 1.2375 (200-H4 MA).
The past two years have seen the biggest swings in oil prices in 14 years, which have baffled markets, investors, and traders due to geopolitical tensions and the shift towards clean energy.
After months of pressure from the White House, Saudi Arabia relented and agreed with other OPEC+ members to increase production.
Last Friday’s NFP was disappointing. The reaction of the markets was astonishing. Will it last longer? Let's find out the main trade opportunities for the upcoming week.
This week, there are a few high-probability trade ideas I'd like to recommend to you. Trading these setups, be sure to implement a proper risk management approach.
On Thursday, the 2nd of February, the Bank of England will publish its report concerning interest rates and inflation data for the Eurozone. Professionals and investors anticipate that Andrew Bailey’s lead team of policy makers will likely raise interest rates to 4%; the highest in over a decade, for the tenth time in a row.
The first FOMC meeting comes after a buildup of anticipation from traders and investors alike, as the markets await what posture the Fed will take regarding the interest rates; would there be a hike or a cut in interest rates?
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