Source: PaxForex Premium Analytics Portal, Fundamental Insight
The UK CPI for July decreased by 0.4% monthly and increased by 6.8% annualized. Economists predicted a drop of 0.5% and a rise of 6.8%. Forex traders can compare this to the UK CPI for June, which rose by 0.1% monthly and 7.9% annualized. The UK Core CPI for July expanded by 0.3% monthly and 6.9% annualized. Economists predicted an increase of 0.2% and 6.8%. Forex traders can compare this to the UK CPI for June, which rose by 0.2% monthly and 6.9% annualized.
The UK PPI Input for July decreased by 0.4% monthly and 3.3% annualized. Economists predicted a flat reading of 0.0% and a drop of 3.1%. Forex traders can compare this to the UK PPI Input for June, which contracted by 1.3% monthly and 2.9% annualized. The UK PPI Output for July rose by 0.1% monthly and contracted by 0.8% annualized. Economists predicted a decrease of 0.2% and 1.3%. Forex traders can compare this to the UK PPI Output for June, which decreased by 0.2% monthly and increased by 0.3% annualized. The UK PPI Core Output for July expanded by 0.1% monthly and 2.3% annualized. Economists predicted a drop of 0.3% and a rise of 1.6%. Forex traders can compare this to the UK PPI Core Output for June, which decreased by 0.2% monthly and accelerated by 3.1% annualized.
The UK RPI for July dropped by 0.6% monthly and increased by 9.0% annualized. Economists predicted a contraction of 0.7% and a rise of 9.0%. Forex traders can compare this to the UK RPI for June, which expanded by 0.3% monthly and 10.7% annualized. The UK Core RPI for July decreased by 0.7% monthly and accelerated by 7.9% annualized. Economists predicted an increase of 0.6% and 8.3%. Forex traders can compare this to the UK Core RPI for June, which rose by 0.2% monthly and surged by 9.6% annualized.
The Eurozone Employment Change for the second quarter is predicted to rise by 0.2% quarterly and 1.4% annualized. Forex traders can compare this to the Eurozone Employment Change for the first quarter, which increased by 0.6% quarterly and 1.6% annualized.
The preliminary Eurozone GDP for the second quarter is predicted to increase 0.3% quarterly and 0.6% annualized. Forex traders can compare this to the Eurozone GDP for the first quarter, which was flat at 0.0% quarterly and rose 1.1% annualized.
Eurozone Industrial Production for June is predicted to decrease by 0.1% monthly and 4.2% annualized. Forex traders can compare this to Eurozone Industrial Production for May, which rose by 0.2% monthly and contracted by 2.2% annualized.
The forecast for the EUR/GBP remains bearish as this currency pair approaches the Senkou Span A of its downward shifting Ichimoku Kinko Hyo Cloud, from where a breakdown is likely. The Kijun-sen flatlined, but the Tenkan-sen shows bearish movement, and an acceleration of the contraction could result in a bearish crossover with heavy selling pressure. Traders should also monitor the CCI following a double breakdown from extreme overbought territory and below zero. This technical indicator has plenty of downside potential, but can bears capitalize on favorable conditions and force the EUR/GBP 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 0.8565 to 0.8600 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 0.8585
- Take Profit Zone: 0.8440 – 0.8475
- Stop Loss Level: 0.8630
Should price action for the EUR/GBP breakout above 0.8600, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 0.8630
- Take Profit Zone: 0.8665 – 0.8700
- Stop Loss Level: 0.8600
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