Source: PaxForex Premium Analytics Portal, Fundamental Insight
The UK CPI for March is predicted to increase by 0.5% monthly and 9.8% annualized. Forex traders can compare this to the UK CPI for February, which rose 1.1% monthly and 10.4% annualized. The Core CPI for March is predicted to expand by 0.6% monthly and 6.0% annualized. Forex traders can compare this to Core CPI for February, which increased 1.2% monthly and 6.2% annualized.
The UK PPI Input for March is predicted to drop by 0.3% monthly and surge by 7.0% annualized. Forex traders can compare this to the UK PPI Input for February, which contracted by 0.1% monthly and sky-rocketed by 12.7% annualized. The UK PPI Output for March is predicted to decrease by 0.1% monthly and rise by 8.6% annualized. Forex traders can compare this to the UK PPI Output for February, which dropped by 0.3% monthly and expanded 12.1% annualized.
The UK RPI for March is predicted to rise by 0.6% monthly and 13.6% annualized. Forex traders can compare this to the UK RPI for February, which increased by 1.2% monthly and 13.8% annualized.
The Eurozone CPI for March is predicted to increase by 0.9% monthly and 6.9% annualized. Forex traders can compare this to the Eurozone CPI for February, which rose by 0.8% monthly and 8.5% annualized. The Eurozone Core CPI for March is predicted to increase by 1.2% monthly and 5.7% annualized. Forex traders can compare this to the Eurozone Core CPI for February, which increased by 0.8% monthly and 5.6% annualized. The Eurozone Harmonized Core CPI for March is predicted to rise 1.1% monthly and 7.5% annualized. Forex traders can compare this to the Eurozone Harmonized Core CPI for February, which rose by 0.9% monthly and 7.4% annualized.
Traders also await the Bank of England Quarterly Bulletin for signs of how the central bank viewed the economy, its outlook, and potential changes to monetary policy, as inflation is high and continues to surprise to the upside.
The forecast for the EUR/GBP turned cautiously bearish after this currency pair was rejected by its Ichimoku Kinko Hyo Cloud, which shows signs of bearishness with a downward shifting Senkou Span A. Volatility could rise after the bearish crossover of the Kijun-sen, which flatlined, below the ascending Tenkan-sen. Traders should also monitor the CCI following a breakdown from extreme overbought territory. A move lower by this technical indicator could shift power in favor of bears. Will bears regain control over the EUR/GBP and force price action into its horizontal support area? Subscribe to the PaxForex Daily Fundamental Analysis and earn over 5,000 pips per month.
Should price action for the EUR/GBP remain inside the or breakdown below the 0.8815 to 0.8845 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 0.8830
- Take Profit Zone: 0.8710 – 0.8740
- Stop Loss Level: 0.8870
Should price action for the EUR/GBP breakout above 0.8845, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 0.8870
- Take Profit Zone: 0.8925 – 0.8980
- Stop Loss Level: 0.8845
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