Source: PaxForex Premium Analytics Portal, Fundamental Insight
The UK CPI for September is predicted to increase by 0.4% monthly and 10.0% annualized. Forex traders can compare this to the UK CPI for August, which rose 0.5% monthly and 9.9% annualized. The Core CPI for September is predicted to expand by 0.5% monthly and 6.4% annualized. Forex traders can compare this to Core CPI for August, which increased 0.8% monthly and 6.3% annualized.
The UK PPI Input for September is predicted to decrease by 0.4% monthly and surge by 18.8% annualized. Forex traders can compare this to the UK PPI Input for August, which contracted 1.2% monthly and sky-rocketed 20.5% annualized. The UK PPI Output for September is predicted to expand by 0.3% monthly and 15.7% annualized. Forex traders can compare this to the UK PPI Output for August, which dropped 0.1% monthly and rose 16.1% annualized.
The UK RPI for September is predicted to rise 0.5% monthly and 12.3% annualized. Forex traders can compare this to the UK RPI for August, which rose 0.6% monthly, and 12.2% annualized.
The Eurozone CPI for September is predicted to increase by 1.2% monthly and 10.0% annualized. Forex traders can compare this to the Eurozone CPI for August, which rose 0.6% monthly and 9.1% annualized. The Eurozone Core CPI for September is predicted to rise 1.0% monthly and 4.8% annualized. Forex traders can compare this to the Eurozone Core CPI for August, which increased 1.0% monthly and 4.3% annualized. The Eurozone Harmonized Core CPI for September is predicted to rise 0.9% monthly and 6.1% annualized. Forex traders can compare this to the Eurozone Harmonized Core CPI for August, which expanded 0.7% monthly and 6.1% annualized.
The forecast for the EUR/GBP remains cautiously bearish after this currency pair reversed a breakout into its horizontal resistance area, from where downside pressures increase. Adding to the bearish outlook is the Ichimoku Kinko Hyo Cloud with its descending Senkou Span A. A crossover below the flat Senkou Span B could trigger more sell orders. Volatility could increase as the Tenkan-sen, and the Kijun-sen, turned sideways, but a renewed downtrend is likely due to the overall bearish bias. Traders should monitor the CCI following its breakout from extreme oversold territory. Failure to sustain a move above the zero level could trigger a reversal with plenty of downside potential. Can bears regain complete 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 0.8650 to 0.8720 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 0.8690
- Take Profit Zone: 0.8435 – 0.8490
- Stop Loss Level: 0.8785
Should price action for the EUR/GBP breakout above 0.8720, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 0.8785
- Take Profit Zone: 0.8885 – 0.8920
- Stop Loss Level: 0.8720
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