Weak UK data, pound under pressure

Frank Walbaum FX Strategies.Asia

Important news for the day

Tue, 17th, 08:00 CET UK Claimant count change.
Tue, 17th, 14:30 CET CA Consumer prices index.

Important data

The Claimant Count change from the UK came in much weaker than expected causing the Pound to selloff further. Recent British data has been negative and the outlook also remains rather grim. The Bank of England left rates unchanged at 3.75% during their most recent meeting two weeks ago but might continue to cut rates next time. the official bank rate votes pointed to a more dovish reading and such move might continue to pressure the Pound as well.

Market talk

The strength of the Dollar might now continue as the USD- index currently shows. Trading on top of the important support zone based on the weekly chart, the market might rise further. That might bring other asset like Gold, Silver and oil under pressure whereas copper prices also started to move to the downside. Due to the negative data from the UK earlier today also the EUR might lose some momentum. That said also the JPY is gearing up steam against other currencies. THE USDJPY is pushing lower and also the GBPJPY is showing signs of a strong bearish reversal for now. Rising bond yields might also support the bullish view. Risky assets like cryptos and AI- based stocks continue to weaken and the trend is expected to contine further.

Tendencies in the markets

Equities weaker, USD positive, crypto sideways, oil weaker, Silver weaker, Gold weaker.

Author

Frank Walbaum

FX Strategies.Asia

Frank has been working in the TV business for several years. Acquiring his skills in Germany’s biggest broadcasting station, he then chose to work and live in Asia, which was in 2007.

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