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...
Will CPI release help the GBP?
2023-08-15 • Updated
UK basic wages have experienced a record growth rate, prompting concerns for the Bank of England (BoE) over persistent inflation pressures despite 14 consecutive interest rate hikes. While the unemployment rate unexpectedly rose to 4.2%, basic earnings increased by 7.8%, the highest in records from 2001. Annual pay growth, including bonuses, accelerated to 8.2%, the fastest outside the pandemic period. Economists predicted smaller pay increases. This situation has implications for BoE rate changes, with rising bond yields and speculation about further hikes, even though BoE Governor Andrew Bailey has hinted at a pause.
GBPJPY - D1 Timeframe
GBPJPY is trading within a wedge pattern, with its most recent reaction coming from the trendline support of the wedge pattern. Considering this, I am more inclined to favor the bullish movement while we wait for the price to reach the supply zone on the weekly timeframe. This kind of scenario is what I refer to as a ‘buy-to-sell setup.’
GBPNZD - D1 Timeframe
GBPNZD is still within the supply zone and possibly headed for the trendline resistance up top. If this were to play out, we could expect GBPNZD to be bullish while we wait for a clear reaction from the trendline resistance as a signal for the commencement of the selling scenario.
GBPAUD - D1 Timeframe
As indicated by the horizontal lines, the weekly pivot is a crucial area for the price. Considering the presence of a trendline resistance within the pivot zone, we can expect an increase in the likelihood of a reaction from the zone. In this scenario, though, as previously discussed, we must wait for a clear indication of a bearish on-set.
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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.