For now, the Federal Reserve is not worried about inflation but could they be at some point? Traders are awaiting today’s U.S. consumer price report at 13:30 UTC and should brace for an upside surprise amid persistent supply chain bottlenecks and elevated energy prices. Higher-than-expected CPI numbers bring forward interest rate hike bets, which is positive for the U.S. dollar, while lower-than expected inflation figures could lift risk-assets across the board.
EUR/USD technical view:
Euro bulls weren’t able to push the pair back above 1.16, at least not until now. As long as the 1.1620-30 price area remains a hurdle, we favor a test of the crucial 1.15-support with a potential break of that support-mark. A next lower target would be at 1.14. Above 1.1630, however, bulls could push the pair for a test of 1.17.
GBP/USD technical view:
After testing the lower bound of the cable’s support-zone around 1.34 we saw the pound recovering some of its losses, testing the 1.36-hurdle. If 1.36 was the limit, traders should brace for steeper losses towards 1.3350 and 1.33. Only a significant break above 1.3650 could change the sentiment in favor of the bulls with a higher target seen at 1.38.
- Subscribe to our daily signal service
Try out our new signals for cryptocurrencies:
Long @ 4760
Short @ 4690
We wish you good trades!
Any and all liability of the author is excluded.
Copyright © All Rights Reserved 2021 MaiMarFX.
Follow us on social media: