Source: PaxForex Premium Analytics Portal, Fundamental Insight
The UK CPI for June increased by 0.1% monthly and 7.9% annualized. Economists predicted a rise of 0.4% and 8.2%. Forex traders can compare this to the UK CPI for May, which rose by 0.7% monthly and 8.7% annualized. The UK Core CPI for June expanded by 0.2% monthly and 6.9% annualized. Economists predicted an increase of 0.4% and 7.1%. Forex traders can compare this to the UK CPI for May, which rose by 0.8% monthly and 7.1% annualized.
The UK PPI Input for June decreased by 1.3% monthly and 2.7% annualized. Economists predicted a decrease of 0.3% and 1.6%. Forex traders can compare this to the UK PPI Input for May, which contracted by 1.2% monthly and rose by 0.4% annualized. The UK PPI Output for June dropped by 0.3% monthly and expanded by 0.1% annualized. Economists predicted a contraction of 0.3% and an increase of 0.5%. Forex traders can compare this to the UK PPI Output for May, which decreased by 0.6% monthly and increased by 2.7% annualized. The UK PPI Core Output for June contracted by 0.2% monthly and rose by 3.0% annualized. Economists predicted a drop of 0.2% and a rise of 2.8%. Forex traders can compare this to the UK PPI Core Output for May, which decreased by 0.5% monthly and accelerated by 3.9% annualized.
The UK RPI for June increased by 0.3% monthly and 10.7% annualized. Economists predicted a rise of 0.4% and 10.9%. Forex traders can compare this to the UK RPI for May, which expanded by 0.7% monthly and 11.3% annualized. The UK Core RPI for June accelerated by 0.2% monthly and 9.6% annualized. Economists predicted an increase of 1.5% and 9.0%. Forex traders can compare this to the UK Core RPI for May, which rose by 0.7% monthly and surged by 10.3% annualized.
The Final Eurozone CPI for June is predicted to rise by 0.3% monthly and 5.5% annualized. Forex traders can compare this to the Eurozone CPI for May, which was flat at 0.0% monthly and rose by 6.1% annualized. The Final Eurozone Core CPI for June is predicted to rise 0.3% monthly and 5.4% annualized. Forex traders can compare this to the Eurozone Core CPI for May, which accelerated by 0.2% monthly and 5.3% annualized. The Final Eurozone Harmonized Core CPI for June is predicted to rise 0.4% monthly and 6.8% annualized. Forex traders can compare this to the Eurozone Harmonized Core CPI for May, which expanded 0.3% monthly and 6.9% annualized. The Final Eurozone CPI excluding Tobacco for June is predicted to decrease by 0.5% monthly and rise by 4.9% annualized. Forex traders can compare this to the Eurozone CPI excluding Tobacco for May, which was flat at 0.0% monthly and increased by 6.1% annualized.
The forecast for the EUR/GBP turned cautiously bearish after this currency pair advanced into its downward shifting Ichimoku Kinko Hyo Cloud. Volatility could rise with the Tenkan-sen and the Kijun-sen moving higher, but a false bullish crossover could precede the next sell-off. Traders should monitor the CCI in extreme overbought territory at unsustainable levels. A breakdown below 100 would offer the final sell signal. Can the 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 0.8635 to 0.8670 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 0.8650
- Take Profit Zone: 0.8440 – 0.8505
- Stop Loss Level: 0.8695
Should price action for the EUR/GBP breakout above 0.8670, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 0.8695
- Take Profit Zone: 0.8765 – 0.8815
- Stop Loss Level: 0.8670
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