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U.K. Inflation Hits Highest Level In 41 Years

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U.K. inflation rose to 11.1 percent from a year ago while this result increases the chances the Bank of England will raise interest rates again next month.

From a technical perspective, there could be room for a bullish extension towards 1.2060 but sterling bulls should be careful since the pound remains slightly overbought. The current support area is seen at around 1.17.

Our trading ideas for today 17/11/22:

EUR/USD

Long @ 1.0410

Short @ 1.0340

GBP/USD

Long @ 1.1925

Short @ 1.1885

DAX® (GER40)

Long @ 14340

Short @ 14290

Settings for all trades today: Entries from 8:00 am UTC,  SL 25

Disclaimer: All trading ideas and expressions of opinion made in the articles are the personal opinion and assumption of MaiMarFX traders. They are not meant to be a solicitation or recommendation to buy or sell a specific financial instrument.

We wish you good trades!

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www.maimar.co

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Can U.K. Inflation Numbers Finally Lift The Pound?

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Dear Traders,

The biggest story in the market was the sharp drop of the British pound as sellers have shown-up in the GBP/USD following hawkish comments from Fed Chair Jerome Powell. With the U.S. economy remaining in good shape despite recent worries about trade tensions, the FOMC believes that “the best way forward is to keep gradually raising the federal funds rate.” The U.S. dollar received a boost from that upbeat outlook with traders bracing for further tightening from the Fed. The market is now pricing in a 90 percent chance of a next rate hike in September and a 64 percent chance of a hike in December.

With the dollar regaining strength both euro and British pound came under increased selling pressure. The GBP/USD dropped more than 140 pips from our short entry level while the EUR/USD slid back towards 1.1650.

Today is day 2 of Powell’s testimony and traders may be looking for further gains in the dollar. We also have the U.K. June inflation numbers scheduled for release at 8:30 UTC. This will be the final piece of CPI data ahead of the BoE August rate decision so watch out for volatile movements in the GBP/USD around that important release.

Daily Forex Signals:

Additional daily and long-term entries are available for subscribers.

View our daily signal alerts https://www.maimar.co/category/daily-signals/

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We wish you good trades and many pips!

Any and all liability of the author is excluded.

Copyright © All Rights Reserved 2018 Maimar-FX.

www.maimar.co

Profitable Sell-Off In EUR/USD And GBP/USD

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Dear Traders,

After several days of sluggish price fluctuations, yesterday has proved to be a profitable trading day in particular for short traders of the EUR/USD and GBP/USD.

The British pound continued its slide versus the U.S. dollar on the back of worse-than-expected U.K. inflation data. The annual CPI fell to 2.4 percent from 2.5 percent while the core CPI fell to 2.1 from 2.3 percent. Lower inflation could keep interest rates lower for longer with the Bank of England being in no rush to tighten monetary policy sooner rather than later. Thus, BoE rate hike expectations are pushed back to November.

The pound marked a fresh support at 1.3305 from where a slight recovery started. As long as pullbacks are limited to 1.34 and 1.3450, sterling bears might retain control.

The euro fell below 1.17 after the weak PMI reading put further pressure on the single currency. We now focus on the 1.1810-level which could act as a short-term resistance. A break below 1.1650 could open the door for further losses towards 1.1620 and 1.1550.

The FOMC Minutes had only a limited impact on the dollar’s price action. With the markets widely anticipating a Fed rate hike in June the minutes were not expected to reveal anything new. The only note in the statement that weighed on the dollar was that “it was premature to conclude that inflation would remain at levels around 2 percent”.

Today we have U.K. Retail Sales scheduled for release at 8:30 UTC. Furthermore, BoE Governor Mark Carney is scheduled to speak at the BoE Markets Forum in London.

Daily Forex Signals:

Additional daily and long-term entries are available for subscribers.

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 2018 Maimar-FX.

www.maimar.co

 

 

GBP Tests Support, What’s Next?

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Dear Traders,

It came as it had to come in the GBP/USD: The British pound retreated from its highs and corrected some of its recent gains. Before yesterday’s pullback happened, we saw the pound touching a fresh post-Brexit high at 1.4377 but the U.K. employment report put an end to the cable’s rally. As we warned traders yesterday, the pullback was inevitable given the overbought situation in the GBP/USD. The job report was, however, generally positive and likely to keep the Bank of England on track to raise interest rates next month.

Today we have the U.K. Consumer Price Report scheduled for release at 8:30 UTC. If inflation numbers come in weaker than expected, the pound could drop towards 1.4230/20. A significant break below 1.4220 could even open the door for a larger decline towards 1.4150. If the pound sterling is, however, able to gain ground above 1.43, buyers may take the opportunity to buy pounds at lower levels with a higher target at 1.4420.

The euro’s climb above 1.24 had been brief while the pair EUR/USD was unable to hold above that important threshold – at least for the time being. With the 1.24-barrier being a hart nut to crack, we now focus on the 1.2350-support which is equivalent to a rising trendline of the recent uptrend channel. Euro bulls should pay attention to a break above 1.2425 which could justify accelerated bullish momentum towards higher targets.

The Eurozone Consumer Price report is scheduled for release at 9:00 UTC but as long as there is no surprise in the headline figure, the report’s impact on the price action could be limited.

Daily Forex Signals:

Additional daily and long-term entries are available for subscribers.

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 2018 Maimar-FX.

www.maimar.co

 

 

British Pound: Further Gains Or Bearish Pullback Ahead?

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Dear Traders,

The biggest story in the markets on Monday was the bullish breakout of the British pound, which soared to a high of 1.4088 after it broke above the psychological level of 1.40. The bullish breakout was triggered shortly after the announcement of an agreement on a transition plan for the period after Brexit. The big question among traders is now whether there could be further gains in the pound.

Today, we have U.K. Inflation numbers due for release at 9:30 UTC and the expectation is for a 2.8 percent read from previously 3 percent. A weaker reading could be an excuse for sterling bulls to take profit on long positions. In a nutshell, there is a risk of a bearish pullback if inflation disappoints.

GBP/USD: If the pound drops below the 1.40-barrier it may extend its slide towards 1.3950. On the topside, if the pound climbs back above 1.4050 it could extend its gains towards 1.41.

The euro was able to stabilize above 1.23 and appears to be heading towards 1.2370 now. For euro bulls it will be interesting whether the euro could also overcome the 1.24-hurdle in the near-term.

From the Eurozone we have the ZEW Survey scheduled for release at 10:00 UTC.

Daily Forex Signals:

Additional daily and long-term entries are available for subscribers.

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 2018 Maimar-FX.

www.maimar.co

GBP/USD: Short Traders Benefit From Bearish Tilt

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Dear Traders,

It has been a relatively quiet start to an eventful trading week with the U.S. dollar slightly strengthening against the pound and the euro ahead of the FOMC meeting. The British pound tumbled towards 1.3330 as Brexit optimism fades. While short traders of the GBP/USD were able to book some profit yesterday, the EUR/USD traded little changed and none of our daily signal entries was triggered.

Today’s focus will shift to the U.K. Consumer Price Report due at 9:30 UTC. If inflation comes in higher than forecast, the pound could find its way back towards 1.3430 and 1.3490. As long as the 1.33-support remains intact, we could see some bullish pullback. If 1.33 breaks we expect further losses towards 1.3220.

From the Eurozone, we have the German ZEW Survey scheduled for release at 10:00 UTC.

The EUR/USD is currently tilted to the downside and if the currency pair is unable to break the 1.18- threshold significantly, we expect the euro to test the 1.17-level.

Daily Forex signals:

Additional daily and long-term entries are available for subscribers.

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 2017 Maimar-FX.

www.maimar.co

Monetary Policy Speak And U.K. CPI Data Could Boost Risk Appetite

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Dear Traders,

The price trend in both GBP/USD and EUR/USD remains disappointing overall. The price of the euro has barely changed with the currency pair still oscillating around 1.1670. The British pound found some halt near 1.3060 and ended the trading day above 1.31.

The lethargic market situation might soon come to an end as market participants brace for higher volatility ahead of today’s upcoming high-profile event. The Heads of the European Central Bank, Federal Reserve and Bank of England are scheduled to speak on a panel in Frankfurt at 10:00 UTC. Chances are slim that policymakers will reveal anything new that the market does not already know but traders should prepare for heightened volatility around this event. If none of today’s speakers touches on monetary policy, the round table discussion will be a non-event for traders.

Shortly before that, sterling traders will pay close attention to the U.K. Consumer Price Report at 9:30 UTC. If inflation data beats expectations the pound could soar towards 1.32 and 1.3250. On the bottom side we will wait for a break below 1.3020 and more importantly 1.30.

EUR/USD

In short-term time frames the euro seems to be primed for an upside breakout. If the price climbs above 1.1680 we may see some bullish continuation towards 1.1715/25. For bearish momentum to accelerate the single currency must significantly drop below 1.1640.

 

Daily Forex signals:

Additional daily and long-term entries are available for subscribers.

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 2017 Maimar-FX.

www.maimar.co

Sterling Traders Focus On U.K. CPI Data

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Dear Traders,

We have seen a bit of a bearish reversal in EUR/USD Monday with the U.S. dollar recovering against the euro. Although yesterday’s slide in EUR/USD does not automatically mean that there will be a trend reversal, it should be noted that the technical picture may promise more downside momentum to come. If the euro falls below 1.1920 and further 1.1885 we could see a slide towards 1.1830. On the topside, buyers in the EUR/USD would first need to push the pair above 1.2030 in order to focus on higher targets at 1.21 and 1.2170.

The British pound ended the trading day virtually unchanged against the greenback with GBP/USD remaining confined to a narrow trading range between 1.3225 and 1.3160. Traders await the U.K. CPI report, due for release at 8:30 UTC today and if inflation data shows an uptick in August, the Bank of England may feel pressure to turn away from its dovish monetary policy stance. This would be positive for the pound but most volatility is expected on Thursday when the BoE announces its rate decision and outlook on policy.

If the pound rises above 1.3225 we may see a run for 1.3265. We bear in mind that the August high is at 1.3268, so sellers may sweep in to sell pounds around that resistance level. On the downside, we expect a support to be at around 1.3050.

Daily Forex signals:

Additional daily and long-term entries are available for subscribers.

View our daily signal alerts https://www.maimar.co/category/daily-signals/

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We wish you good trades and many pips!

Any and all liability of the author is excluded.

Copyright © All Rights Reserved 2017 Maimar-FX.

www.maimar.co

Will U.K. CPI Data Prompt Sterling Bulls For A Run For 1.30?

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Dear Traders,

Euro bulls have regained control and pushed the EUR/USD up to a test of 1.10 this morning. Traders are now on the look-out for a sustained upside-break of that psychological level. If the euro breaks above 1.1023, the opening price following the first round of French elections, we see chances of a climb towards 1.1070. On the bottom side, we expect a current support to be around 1.09. The most important piece of Eurozone data this morning will be the Gross Domestic Product for the first quarter, scheduled for release at 9:00 UTC. At the same time, the German ZEW Survey is due for release. Any upside surprises could translate into further euro strength.

The British pound found some halt near 1.2880 after an attempt to break the 1.2940-level has failed. All eyes will be on the Consumer Price report, scheduled for release at 8:30 UTC and if inflation data is upbeat, the pound could trade higher targeting 1.2970 and 1.3020. Current support levels are however seen at 1.2860 and 1.28.

Daily Forex signals:

Additional daily and long-term entries are available for subscribers.

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 2017 Maimar-FX.

www.maimar.co

 

 

 

GBP/USD: U.K. Inflation Report To Dictate Price Action

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Dear Traders,

While the U.S. dollar ended the day virtually unchanged against the euro, it traded slightly lower versus the British pound Monday. Meanwhile, there were no new insights from Federal Reserve Chair Janet Yellen. She reiterated several previously stated positions when speaking at the University of Michigan. Yellen said she expected the U.S. economy to continue to grow at a moderate pace and that gradual interest rate increases “can get us where we need to be”. Fed policy makers expect two additional rate hikes in 2017.

The British pound recovered some losses and rose towards 1.2430. However, as long as the pound remains below 1.2450/70, we favor a bearish stance. For sterling to rally it would possibly require a break above 1.2480 and further 1.2505. Today’s price action will hinge on the U.K. inflation report, scheduled for release at 8:30 UTC. If Consumer Price growth comes in with a downtick, sterling could fall towards 1.2340. Stronger inflation however, may encourage sterling bulls to push the currency beyond the 1.2470-level.

The euro trod water with the price reluctant to push above the 1.06-mark. Euro traders remain risk-averse ahead of the French elections and with no market-moving data on the calendar, the euro might continue to trade sideways within tight trading ranges. The German ZEW Survey is scheduled for release at 9:00 UTC but this report cannot be considered important enough to free the euro from its lethargy. In short-term time frames we expect the euro’s price action to be limited to a trading range of 1.0640 and 1.0530.

Daily Forex signals:

Additional daily and long-term entries are available for subscribers.

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 2017 Maimar-FX.

www.maimar.co