Here are the key factors to keep in mind today for British Pound trades:
- UK CPI: The UK CPI for December is predicted to increase by 0.2% monthly and by 2.1% annualized. Forex traders can compare this to the UK CPI for November which increased by 0.2% monthly and by 2.3% annualized. The Core CPI for December is predicted to increase by 1.8% annualized and the CPI Including Housing Costs is predicted to increase by 2.0% annualized. Forex traders can compare this to Core CPI for November which increased by 1.8% annualized and to the CPI Including Housing Costs which increased by 2.2% annualized.
- UK PPI: The UK PPI Input for December is predicted to decrease by 1.4% monthly and to increase by 3.7% annualized. Forex traders can compare this to the UK PPI Input for November which decreased by 2.3% monthly and which increased by 5.6% annualized. The UK PPI Output for December is predicted flat at 0.0% monthly and to increase by 2.9% annualized. Forex traders can compare this to the UK PPI Output for November which increased by 0.2% monthly and by 3.1% annualized. The UK PPI Core Output for December is predicted to increase by 0.1% monthly and by 2.4% annualized. Forex traders can compare this to the UK PPI Core Output for November which increased by 0.1% monthly and by 2.4% annualized.
- UK RPI: The UK RPI for December is predicted to increase by 0.5% monthly and by 2.9% annualized. Forex traders can compare this to the UK RPI for November which was reported flat at 0.0% monthly and which increased by 3.2% annualized. The UK RPI Excluding Mortgage Interest Payments for December is predicted to increase by 2.8% annualized. Forex traders can compare this to the UK RPI Excluding Mortgage Interest Payments for November which increased by 3.1% annualized.
- UK House Price Index: The UK House Price Index for November is predicted to increase by 3.0% annualized. Forex traders can compare this to the UK House Price Index for October which increased by 2.7% annualized.
Here are the key factors to keep in mind today for US Dollar trades:
- US Import and Export Price Index: The US Import Price Index for December is predicted to decrease by 1.3% monthly and by 0.9% annualized. Forex traders can compare this to the US Import Price Index for November which decreased by 1.6% monthly and which increased by 0.7% annualized. The US Import Price Index excluding Petroleum for December is predicted to decrease by 0.1% monthly. Forex traders can compare this to the US Import Price Index excluding Petroleum for November which decreased by 0.3% monthly. The US Export Price Index for December is predicted to decrease by 0.7% monthly and by 0.5% annualized. Forex traders can compare this to the US Export Price Index for November which decreased by 0.9% monthly and which increased by 1.8% annualized.
- US NAHB Housing Market Index: The US NAHB Housing Market Index for January is predicted at 56. Forex traders can compare this to the US NAHB Housing Market Index for December which was reported at 56.
- US Federal Reserve Beige Book: Forex traders will look forward to this report which covers all twelve Federal Reserve districts and consists of current economic conditions and challenges. It may provide an important indicator of how steep the US economy is slowing down. Volatility in the US Dollar is expected to increase as forex traders sort through the details of the Beige Book.
Should price action for the GBPUSD remain inside the or breakout above the 1.2820 to 1.2930 zone the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.2880
- Take Profit Zone: 1.3255 – 1.3300
- Stop Loss Level: 1.2810
Should price action for the GBPUSD breakdown below 1.2820 the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1.2790
- Take Profit Zone: 1.2580 – 1.2625
- Stop Loss Level: 1.2880
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