Source: PaxForex Premium Analytics Portal, Fundamental Insight
The UK CPI for January decreased 0.6% monthly and increased 4.0% annualized. Economists predicted a drop of 0.3% and a rise of 4.1%. Forex traders can compare this to the UK CPI for December, which expanded 0.4% monthly and 4.0% annualized. The UK Core CPI for January plunged 0.9% monthly and surged 5.1% annualized. Economists predicted a contraction of 0.8% and an acceleration of 5.2%. Forex traders can compare this to the UK CPI for December, which surged 0.6% monthly and 5.1% annualized.
The UK PPI Input for January decreased by 0.8% monthly and 3.3% annualized. Economists predicted a rise of 0.1% and a contraction of 3.0%. Forex traders can compare this to the UK PPI Input for December, which dropped by 0.4% monthly and 2.1% annualized. The UK PPI Output for January decreased by 0.2% monthly and 0.6% annualized. Economists predicted a contraction of 0.2% and 0.5%. Forex traders can compare this to the UK PPI Output for December, which decreased by 0.1% monthly and rose 0.1% annualized. The UK PPI Core Output for January increased by 0.2% monthly and decreased by 0.4% annualized. Forex traders can compare this to the UK PPI Core Output for December, which contracted by 0.1% monthly and came in flat at 0.0% annualized.
The UK RPI for January decreased by 0.3% monthly and increased by 4.9% annualized. Economists predicted a contraction of 0.1% and a rise of 5.1%. Forex traders can compare this to the UK RPI for December, which accelerated by 0.5% monthly and 5.2% annualized. The UK Core RPI for January decreased by 0.4% monthly and rose by 3.8% annualized. Forex traders can compare this to the UK Core RPI for December, which expanded by 0.4% monthly and 4.0% annualized.
The Eurozone Employment Change for the fourth quarter is predicted to rise by 0.3% quarterly and 1.1% annualized. Forex traders can compare this to the Eurozone Employment Change for the third quarter, which increased by 0.2% quarterly and 1.3% annualized.
The advanced Eurozone GDP for the fourth quarter is predicted flat at 0.0% quarterly and to increase by 0.1% annualized. Forex traders can compare this to the Eurozone GDP for the third quarter, which decreased 0.1% quarterly and was flat at 0.0% annualized.
Eurozone Industrial Production for December is predicted to decrease by 0.2% monthly and 4.1% annualized. Forex traders can compare this to Eurozone Industrial Production for November, which dropped by 0.3% monthly and 6.8% annualized.
The forecast for the EUR/GBP turned moderately bullish after this currency pair corrected into its horizontal support area. Short-term volatility could increase with the Tenkan-sen and the Kijun-sen drifting lower but showing signs of flattening out. The Ichimoku Kinko Hyo Cloud supplies ongoing downside pressures. Traders should also monitor the CCI in extreme oversold territory after recording a lower low before reversing sharply higher. A breakout above -100 could trigger a relief rally. Can bulls regain control over the EUR/GBP and push price action into its horizontal resistance 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 breakout above the 0.8500 to 0.8535 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 0.8520
- Take Profit Zone: 0.8620 – 0.8655
- Stop Loss Level: 0.8460
Should price action for the EUR/GBP breakdown below 0.8500, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 0.8460
- Take Profit Zone: 0.8340 – 0.8380
- Stop Loss Level: 0.8500
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