uk cpi set to fall below 1 86662015
<p>The pound will be the one to watch today with the UK inflation data set to drop to a 12-year low at 0.7% from 1%. […]</p>
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The pound will be the one to watch today with the UK inflation data set to drop to a 12-year low at 0.7% from 1%. It’s been stuck in a 100-point range since yesterday and it looks like we’re waiting for the data to push on with a direction.
Today, GBP/USD has started off weak as the expected drop in inflation keeps pressure on until the data is out. It’s currently trading just below 1.5150.
Overnight the China trade balance was released and was better than expected, which has kept AUD and NZD steady as they benefit off the back of good data from China. Currently, AUD/USD is trading below 0.8200 and NZD/USD below 0.7800.
The yen had an interesting night after the USD/JPY broke through the 118.00 level and filled stops down to 117.75, only to turn and bounce 100 points higher on the back of stocks and oil declines,. It’s currently trading below 118.50.
The euro is holding onto gains made yesterday after falling as low as 1.1785 as the market tries to decided whether the ECB is going to act at the end of this month with its bond purchasing. The ECB’s Nowotny was on the wires saying the ECB should act sooner, not later, on the monetay policy. Also, the ECB’s Coeure has suggested that the Greek election does not affect ECB monetary policy.
Lots going on in the euro area this month but until the ECB meeting, we may possibly see a lot more of this choppy trading: currently trading just below 1.1850.
In the US, more speaking from Fed’s Lockhart, who said he sees strong US growth and a rate hike in Mid 2015, while the Fed’s Williams said a June rate rise is “reasonable amid labor gains”.
EUR/USD
Supports 1.1790 1.1745 1.1700 | Resistance 1.1875 1.1915 1.1960
USD/JPY
Supports 117.85 117.35 116.60 | Resistance 119.10 119.80 120.30
GBP/USD
Supports 1.5115 1.5060 1.5030 | Resistance 1.5200 1.5240 1.5295
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