Source: PaxForex Premium Analytics Portal, Fundamental Insight
The UK CPI for December is predicted to increase by 0.4% monthly and 10.5% annualized. Forex traders can compare this to the UK CPI for November, which rose 0.4% monthly and 10.7% annualized. The Core CPI for December is predicted to expand by 0.4% monthly and 6.2% annualized. Forex traders can compare this to Core CPI for November, which increased 0.3% monthly and 6.3% annualized.
The UK PPI Input for December is predicted to increase by 0.2% monthly and surge by 18.0% annualized. Forex traders can compare this to the UK PPI Input for November, which rose by 0.6% monthly and sky-rocketed 19.2% annualized. The UK PPI Output for December is predicted to expand by 0.3% monthly and 16.4% annualized. Forex traders can compare this to the UK PPI Output for November, which rose by 0.3% monthly and rose 14.8% annualized.
The UK RPI for December is predicted to rise by 0.7% monthly and 13.6% annualized. Forex traders can compare this to the UK RPI for November, which increased by 0.6% monthly and 14.0% annualized.
The UK House Price Index for December is predicted to surge 10.4% annualized. Forex traders can compare this to the UK House Price Index for November, which accelerated by 12.6% annualized. Housing Equity Withdrawals for the fourth quarter were -£7.9B quarterly. Forex traders can compare this to Housing Equity Withdrawals for the third quarter, which came in at -£5.1.
The South African CPI for December is predicted to increase by 0.3% monthly and 7.2% annualized. Forex traders can compare this to the South African CPI for November, which rose by 0.3% monthly and 7.4% annualized. The Core CPI for December is predicted to expand by 0.3% monthly and 5.1% annualized. Forex traders can compare this to Core CPI for November, which increased by 0.1% monthly and 5.0% annualized.
South African Retail Sales for November are predicted to decrease by 0.2% annualized. Forex traders can compare this to South African Retail Sales for October, which dropped 0.6% annualized.
The forecast for the GBP/ZAR remains cautiously bullish after this currency pair advanced into its Ichimoku Kinko Hyo Cloud. Volatility could rise with the Kijun-sen flat and the Tenkan-sen rising. A bullish crossover could spark the next leg higher. Traders should monitor the CCI in extreme overbought conditions and wait for a brief pullback below 100, followed by a renewed advance before buying the dip. Can bulls thwart off bears and keep upside pressure intact in the GBP/ZAR? Subscribe to the PaxForex Daily Fundamental Analysis and earn over 5,000 pips per month.
Should price action for the GBP/ZAR remain inside the or breakout above the 20.8300 to 21.0300 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 20.9485
- Take Profit Zone: 21.6165 – 21.9130
- Stop Loss Level: 20.7000
Should price action for the GBP/ZAR breakdown below 20.8300, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 20.7000
- Take Profit Zone: 20.2200 – 20.3600
- Stop Loss Level: 20.8300
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