Forex traders will get economic data out of the Eurozone’s third biggest economy where expectations call for a monthly increase in Italian new industrial orders as well as sales. Eurozone inflation data will also be released and economists expect it to confirm the absence of inflationary pressures. How will this impact the EURGBP? This currency pair started a strong sell-off after a no deal Brexit has been taken off the table by the UK Parliament. Can today’s economic data initiate a short-covering rally? Follow the PaxForex Daily Fundamental Analysis and take the profitable side of this trade.
Inflation data out of the UK will be front and center today and could add volatility to the British Pound. Economists anticipate a monthly increase in inflation as wages are surging in a tightening labor market. Forex traders await the UK Supreme Court decision about the legality of PM Johnson’s prorogation of Parliament and the bullishness in the British Pound is due for a breather. Will profit taking add to a price action reversal in the EURGBP? This morning’s fundamental analysis will cover price action in both directions.
Here are the key factors to keep in mind today for Euro trades:
- Italian Industrial New Orders and Industrial New Sales: Italian Industrial New Orders for July are predicted to increase by 1.9% monthly and to decrease by 2.6% annualized. Forex traders can compare this to Italian Industrial New Orders for June which decreased by 0.9% monthly and by 4.8% annualized. Italian Industrial New Sales for July are predicted to increase by 0.2% monthly and to decrease by 1.5% annualized. Forex traders can compare this to Italian Industrial New Orders for June which decreased by 0.5% monthly and by 0.8% annualized.
- Eurozone CPI and Eurozone Core CPI: The Eurozone CPI for August is predicted to increase by 0.2% monthly and by 1.0% annualized. Forex traders can compare this to the Eurozone CPI for July which decreased by 0.5% monthly and which increased by 1.0% annualized. The Eurozone Core CPI for August is predicted to increase by 0.2% monthly and by 0.9% annualized. Forex traders can compare this to the Eurozone Core CPI for July which increased by 0.2% monthly and by 0.9% annualized.
Here are the key factors to keep in mind today for British Pound trades:
- UK CPI: The UK CPI for August is predicted to increase by 0.5% monthly and by 1.9% annualized. Forex traders can compare this to the UK CPI for July which was reported flat at 0.0% monthly and which increased by 2.1% annualized. The Core CPI for August is predicted to increase by 1.8% annualized and the CPI Including Housing Costs is predicted to increase by 1.9% annualized. Forex traders can compare this to Core CPI for July which increased by 1.9% annualized and to the CPI Including Housing Costs which increased by 2.0% annualized.
- UK PPI: The UK PPI Input for August is predicted to decrease by 0.2% monthly and by 0.1% annualized. Forex traders can compare this to the UK PPI Input for July which increased by 0.9% monthly and by 1.3% annualized. The UK PPI Output for August is predicted to increase by 0.2% monthly and by 1.7% annualized. Forex traders can compare this to the UK PPI Output for July which increased by 0.3% monthly and by 1.8% annualized. The UK PPI Core Output for August is predicted to increase by 0.2% monthly and by 2.0% annualized. Forex traders can compare this to the UK PPI Core Output for July which increased by 0.4% monthly and by 2.0% annualized.
- UK RPI: The UK RPI for August is predicted to increase by 0.7% monthly and by 2.6% annualized. Forex traders can compare this to the UK RPI for July which was reported flat at 0.0% monthly and which increased by 2.8% annualized. The UK RPI Excluding Mortgage Interest Payments for August is predicted to increase by 2.5% annualized. Forex traders can compare this to the UK RPI Excluding Mortgage Interest Payments for July which increased by 2.7% annualized.
- UK House Price Index: The UK House Price Index for July is predicted to increase by 1.0% annualized. Forex traders can compare this to the UK House Price Index for June which increased by 0.9% annualized.
Should price action for the EURGBP remain inside the or breakout above the 0.8790 to 0.8885 zone the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 0.8860
- Take Profit Zone: 0.9085 – 0.9145
- Stop Loss Level: 0.8765
Should price action for the EURGBP breakdown below 0.8790 the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 0.8765
- Take Profit Zone: 0.8615– 0.8680
- Stop Loss Level: 0.8800
Open your PaxForex Trading Account now and add this currency pair to your forex portfolio. FX trading continues to attract tens of thousands of new traders every day, find out now why PaxForex is home to one of the fastest growing communities of profitable forex traders!
We are one of the fastest growing Forex Brokers in the Market. Trade with PaxForex to get the full Forex Trading experience which is based on...
- The Reliability on all Assets in the Market
- Trusted Worldwide for over a Decade
- Live Multi-Lingual Online Support 24/5
