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.
GBP/USD is volatile
2019-11-11 • Updated
SELL 1.2845; TP1 1.28; TP2 1.2760; SL 1.2860
Price action in GBP/USD looks as shaky and volatile as ever. The pound has made 2 sharp declines in January but then was bought back and quickly rebounded moving up. However, the recovery stalled at the horizontal 100-day MA at 1.2890. It doesn’t look like the pound has the strength to overcome this obstacle in the nearest term.
As a result, we expect the pair to make another go for the downside before it tries to test 1.30. It’s reasonable to focus on such targets as 1.28 (big figure, 50-period MA at H4) and 1.2760 (50-day MA, support line).
The odds of a final interest rate hike by the US Federal Reserve (Fed) this year have dropped after US job openings hit their lowest levels since early 2021. This has led to a correction in the US Dollar as traders reduced their bets on further rate hikes.
Here we go again, my friends. It’s time to look critically into the future of what trading opportunities September might have in store for us. As always, it is essential to note that the views expressed here are mine and should not be considered financial advice without proper examination.
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