• Will UK CPI data drive cable even lower?

  • USDJPY still skyrockets ahead of Japanese CPI.

  • China GDP may help AUDUSD exit from trading range.

 

UK CPI data – GBP/USD

Inflation in the United Kingdom dropped to 3.4% in February, and experts predict that it will fall to    3.1% in March. It is anticipated that the core figure will likewise fall once more. On Friday, eyes will be on the March retail sales figures to see if spending is increasing.

Currently, cable is trading higher after the strong sell-off on Friday, penetrating the long-term sideways channel to the downside. Incoming data might potentially lead to a decline in price if it indicates that the Bank of England is still planning to begin cutting rates in August, even while the Fed’s timeframe has begun to move to September. More losses may take the pair towards the 1.2370 support level, registered on November 17. Notably, the pair is holding beneath the simple moving averages (SMAs) and the technical oscillators are moving in oversold territories.

Japan CPI data – USD/JPY

Japanese inflation rose dramatically in February following a year-long drop. Core CPI, which excludes fresh food, climbed to 2.8% from 2.0%. While total CPI may have increased slightly, the core figure, released on Friday, is expected to fall to 2.6%, remaining above the Bank of Japan's 2% objective. Governor Ueda has hinted that the Bank of Japan may raise rates again at the end of the year.

In FX markets, USDJPY is creating higher highs over the last four days, touching a fresh 34-year peak of 153.85 today. The extension of this aggressive rally may boost the market towards the 161.8% Fibonacci extension level of the downward wave from 151.95 to 140.20 at 159.15 but first traders need to be cautious about the psychological numbers of 154.00, 155.00. Any downside retracements could lead the market until the immediate support lines of 151.95, which overlaps with the 20-day SMA and the 150.87 barrier.

China GDP  – AUD/USD

China will release its GDP figures on Tuesday as hopes for its economic recovery grow. The economy possibly grew by 1.4% quarter-on-quarter in the three months ending in March. But the markets might be more interested in the fact that  the annual rate is forecast to have dropped from 5.2% to 4.6%.

AUDUSD has been developing within a trading range since mid-January, facing resistance near the 0.6635 level and support at 0.6440.  An immediate turning point for possible upside pressures may be the 0.6440 barrier, heading towards the 200-day SMA at 0.6535. However, any tumbles beneath this support could open the way for steeper decreases towards the 0.6340 bar. The technical oscillators are showing some mixed signals as the MACD is moving horizontally beneath the zero level, while the RSI is pointing slightly up in the bearish region. 

Forex trading and trading in other leveraged products involves a significant level of risk and is not suitable for all investors.

Recommended Content


Recommended Content

Editors’ Picks

EUR/USD recovers toward 1.0850 as risk mood improves

EUR/USD recovers toward 1.0850 as risk mood improves

EUR/USD gains traction and rises toward 1.0850 on Friday. The improvement seen in risk mood makes it difficult for the US Dollar (USD) to preserve its strength and helps the pair erase a portion of its weekly losses. 

EUR/USD News

GBP/USD stabilizes above 1.2700 after downbeat UK Retail Sales-led dip

GBP/USD stabilizes above 1.2700 after downbeat UK Retail Sales-led dip

GBP/USD staged a rebound and stabilized above 1.2700 after dropping to a weekly low below 1.2680 in the early European session in response to the disappointing UK Retail Sales data. The USD struggles to find demand on upbeat risk mood and allows the pair to hold its ground. 

GBP/USD News

Gold rebounds to $2,340 area, stays deep in red for the week

Gold rebounds to $2,340 area, stays deep in red for the week

Gold fell nearly 4% in the previous two trading days and touched its weakest level in two weeks below $2,330 on Thursday. As US Treasury bond yields stabilize on Friday, XAU/USD stages a correction toward $2,340 but remains on track to post large weekly losses.

Gold News

Dogecoin inspiration Kabosu dies, leaving legacy of $22.86 billion market cap meme coin behind

Dogecoin inspiration Kabosu dies, leaving legacy of $22.86 billion market cap meme coin behind

Kabosu, the popular Shiba Inu dog that inspired the logo of the largest meme coin by market capitalization, Dogecoin (DOGE), died early on Friday after losing her fight to leukemia and liver disease.

Read more

Week ahead – US PCE inflation and Eurozone CPI data enter the spotlight

Week ahead – US PCE inflation and Eurozone CPI data enter the spotlight

Dollar traders lock gaze on core PCE index. Eurozone CPIs in focus as June cut looms. Tokyo CPIs may complicate BoJ’s policy plans. Aussie awaits Australian CPIs and Chinese PMIs.

Read more

Majors

Cryptocurrencies

Signatures