Source: PaxForex Premium Analytics Portal, Fundamental Insight
The UK Jobless Claims Change for May came in at -19.7K. Economists predicted a figure of -49.4K. Forex traders can compare this to the UK Jobless Claims Change for April, reported at -65.5K.
The UK Employment Change for the tri-monthly period ending in April came in at 177K and the ILO Unemployment Rate at 3.8%. Economists predicted a reading of 105K and 3.6%. Forex traders can compare this to the UK Employment Change for March, reported at 83K, and to the ILO Unemployment Rate at 3.7%. Average Weekly Earnings for the tri-monthly period ending in April increased by 6.8% annualized, and Average Weekly Earnings Excluding Bonuses rose 4.2% annualized. Economists predicted a rise of 7.6% and 4.0%. Forex traders can compare this to Average Weekly Earnings for March, which rose 7.0%, and to Average Weekly Earnings Excluding Bonuses, which increased by 4.2%.
The Final German CPI for May rose 0.9% monthly and 7.9% annualized. Economists predicted an increase of 0.9% and 7.9%. Forex traders can compare this to the German CPI for April, which expanded 0.8% monthly and 7.4% annualized. The Final EU Harmonized German CPI for May increased 1.1% monthly and 8.7% annualized. Economists predicted a rise of 1.1% and 8.7%. Forex traders can compare this to the EU Harmonized German CPI for April, which rose 0.7% monthly and 7.8% annualized.
The German Wholesale Price Index for May increased 1.0% monthly and 22.9% annualized. Forex traders can compare this to the German Wholesale Price Index for April, which rose 2.1% monthly and 23.8% annualized.
The German ZEW Survey Current Situation Index for June is predicted at -31.0, and the German ZEW Survey Economic Sentiment Index at -27.5. Forex traders can compare this to the German ZEW Survey Current Situation Index for May, reported at -36.5, and to the German ZEW Survey Economic Sentiment Index at -34.3.
The forecast for the EUR/GBP turned bearish after this currency pair advanced into its horizontal resistance area. Confirming the lack of bullishness are the flat Kijun-sen, the flat, Tenkan-sen, and the flat Ichimoku Kinko Hyo Cloud. Forex traders should expect an increase in volatility and monitor the CCI, which formed a lower high in extreme overbought territory. A breakdown below 100 could trigger the next sell-off. Can bears overcome bulls 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 0.8540 to 0.8620 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 0.8565
- Take Profit Zone: 0.8330 – 0.8365
- Stop Loss Level: 0.8660
Should price action for the EUR/GBP breakout above 0.8620, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 0.8660
- Take Profit Zone: 0.8720 – 0.8765
- Stop Loss Level: 0.8620
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