UK GfK Consumer Confidence remained unchanged at -14, but the Lloyds Business Barometer rose. Forex traders will now await housing and consumer credit data due to be released during the European morning trading session. The GBPJPY has rallied strongly as the UK election is approaching. Will bulls force a breakout and continue to advance or will bears pressure for a breakdown? Subscribe to the PaxForex Daily Fundamental Analysis and grow your balance trade-by-trade.
Japanese industrial production contracted more than expected in the latest sign that the global economy has not found a bottom yet and more pain is expected. The labor market remained tight and consumer confidence rose more than economists anticipated but remains at depressed levels. Housing starts contracted less than forecasted with stable construction orders. How will the GBPJPY react following the release of more UK data? Today’s fundamental analysis will take a look at the upside potential as well as the downside risk in this currency pair.
Here are the key factors to keep in mind today for British Pound trades:
- UK GfK Consumer Confidence: UK GfK Consumer Confidence for November was reported at -14. Economists predicted a figure of -14. Forex traders can compare this to UK GfK Consumer Confidence for October which was reported at -14.
- UK Lloyds Business Barometer: The UK Lloyds Business Barometer for November was reported at 9. Forex traders can compare this to the UK Lloyds Business Barometer for October which was reported at 6.
- UK Nationwide House Prices: UK Nationwide House Prices for November are predicted to increase by 0.1% monthly and by 0.2% annualized. Forex traders can compare this to UK Nationwide House Prices for October which increased by 0.2% monthly and by 0.4% annualized.
- UK Consumer Credit and Net Lending Securities on Dwellings: UK Net Consumer Credit for October is predicted at £0.9B and Net Lending Securities on Dwellings is predicted at £3.8B. Forex traders can compare this to UK Net Consumer Credit for September which was reported at £0.8B and to Net Lending Securities on Dwellings which was reported at £3.9B.
- UK Mortgage Approvals: UK Mortgage Approvals for October are predicted at 65.4K. Forex traders can compare this to UK Mortgage Approvals for September which were reported at 65.9K.
Here are the key factors to keep in mind today for Japanese Yen trades:
- Japanese Jobless Rate and Job-to-Applicant Ratio: The Japanese Jobless Rate for October was reported at 2.4% and the Job-to-Applicant Ratio at 1.57. Economists predicted a figure of 2.4% and 1.56. Forex traders can compare this to the Japanese Jobless Rate for September which was reported at 2.4% and to the Job-to-Applicant Ratio which was reported at 1.57.
- Japanese Industrial Production: Preliminary Japanese Industrial Production for October decreased by 4.2% monthly and by 7.4% annualized. Economists predicted a decrease of 2.0% monthly and 5.3% annualized. Forex traders can compare this to Japanese Industrial Production for September which increased by 1.7% monthly and by 1.3% annualized.
- Japanese Consumer Confidence: Japanese Consumer Confidence for November was reported at 38.7. Economists predicted a figure of 37.0. Forex traders can compare this to Japanese Consumer Confidence for October which was reported at 36.2.
- Japanese Housing Starts and Construction Orders: Japanese Housing Starts for October decreased by 5.6% annualized to 0.879M units. Economists predicted a decrease of 7.4% annualized to 0.879M units. Forex traders can compare this to Japanese Housing Starts for September which decreased by 4.9% annualized to 0.897M units. Construction Orders for October increased by 6.4% annualized. Forex traders can compare this to Construction Orders for August which decreased by 6.8% annualized.
Should price action for the GBPJPY remain inside the or breakdown below the 140.900 to 141.700 zone the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 141.400
- Take Profit Zone: 135.750 – 136.450
- Stop Loss Level: 142.200
Should price action for the GBPJPY breakout above 141.700 the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 142.200
- Take Profit Zone: 143.700 – 144.800
- Stop Loss Level: 141.700
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