Subdued Market Activity
Dear Traders,
There was only little consistency in the performance of the U.S. dollar Thursday. U.S. Consumer prices were below expectations and as long as inflation fails to pick up, there is no call for rate increases by the Federal Reserve. Rather, the Fed may tend to be even more restrained in maintaining a hawkish stance, at least until inflation accelerates.
The recent price fluctuations in both major pairs left much do be desired for day-traders and the speculative interest was relatively muted. For now, we must wait until the risk appetite of investors increases in order to profit accordingly from new opportunities in the market.
The only interesting economic data releases could be U.S. Industrial Production, due at 13:15 GMT and University of Michigan Confidence at 14:00 GMT. Whether these reports will affect the USD remains to be seen.
EUR/USD: The euro traded between 1.1295 and 1.1230. If the pair falls back below 1.1235 we expect next crucial price levels to be at 1.1195 and 1.1170. However, if the euro climbs above 1.13 a next resistance is seen at 1.1330/50.
GBP/USD: The cable currently formatted a narrow trading range between 1.4170 and 1.4130. Above 1.4170, sterling must significantly break through 1.42 in order to regain bullish strength. Below 1.4130, the focus remains on the 1.41-mark but once this level is breached to the downside, GBP could slide towards 1.4050 and 1.40.
We wish you profitable trades and a wonderful weekend.
Daily Forex signals:
View our daily signal alerts https://www.maimar.co/category/daily-signals/
Subscribe to our daily signal service https://www.maimar.co/signals/
We wish you good trades and many pips!
Any and all liability of the author is excluded.
Copyright © All Rights Reserved 2016 Maimar-FX.
