Source: PaxForex Premium Analytics Portal, Fundamental Insight
The UK CPI for July is predicted to increase 0.4% monthly and 9.8% annualized. Forex traders can compare this to the UK CPI for June, which rose 0.8% monthly and 9.4% annualized. The Core CPI for July is predicted to expand 0.2% monthly and 5.9% annualized. Forex traders can compare this to Core CPI for June, which increased 0.4% monthly and 5.8% annualized.
The UK PPI Input for July is predicted to increase 1.4% monthly and 23.9% annualized. Forex traders can compare this to the UK PPI Input for June, which rose 1.8% monthly and 24.0% annualized. The UK PPI Output for July is predicted to expand 0.8% monthly and 16.2% annualized. Forex traders can compare this to the UK PPI Output for June, which increased 1.4% monthly and 16.5% annualized.
The UK RPI for July is predicted to rise 0.6% monthly and 12.0% annualized. Forex traders can compare this to the UK RPI for June, which rose 0.9% monthly, and 11.8% annualized.
US Retail Sales for July are predicted to increase 0.1% monthly and Core Retail Sales to decrease by 0.1% monthly. Forex traders can compare this to US Retail Sales for June, which rose 1.0% monthly, and Core Retail Sales, which expanded 1.0% monthly. Retail Sales in the Control Group for July are predicted to rise 0.6% monthly. Forex traders can compare this to Retail Sales in the Control Group for June, which rose 0.8% monthly.
US Business Inventories for June are predicted to increase 1.4% monthly, and Business Inventories excluding Autos by 1.6%. Forex traders can compare this to US Business Inventories for May, which rose 1.4% monthly, and Business Inventories excluding Autos by 1.4%.
US Crude Oil Inventories for the week ending August 12th are predicted at -0.275M. Traders can compare this to US Crude Oil Inventories for the week ending August 5th, reported at 5.458M. US Gasoline Inventories for the week ending August 12th are predicted at -1.096M and US Distillate Stocks at 0.440M. Traders can compare this to US Gasoline Inventories for the week ending August 5th, reported at -4.978M, and US Distillate Stocks at 2.166M.
The forecast for the GBP/USD remains bullish after this currency pair recovered into its Ichimoku Kinko Hyo Cloud. It shows bullish signs and narrows after the Senkou Span A has begun moving higher, while the Senkou Span B is flat. Traders should expect volatility to rise with the Kijun-sen and the Tenkan-sen flat, suggesting the absence of short-term upside pressures. The CCI briefly dipped into extreme oversold territory before reversing, and a breakout above 0 could result in the next push higher. Can bulls regain control and pressure the GBP/USD into its horizontal resistance area? Subscribe to the PaxForex Daily Fundamental Analysis and earn over 5,000 pips per month.
Should price action for the GBP/USD remain inside the or breakout above the 1.2025 to 1.2140 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.2120
- Take Profit Zone: 1.2570 – 1.2665
- Stop Loss Level: 1.1980
Should price action for the GBP/USD breakdown below 1.2025, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1.1980
- Take Profit Zone: 1.1760 – 1.1875
- Stop Loss Level: 1.2025
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