Source: PaxForex Premium Analytics Portal, Fundamental Insight
The UK CPI for December rose 0.5% monthly and 5.4% annualized. Economists predicted an increase of 0.3% and 5.2%. Forex traders can compare this to the UK CPI for November, which rose 0.7% monthly and 5.1% annualized. The Core CPI for December rose 0.5% monthly and 4.2% annualized. Economists predicted an increase of 0.2% and 3.9%. Forex traders can compare this to Core CPI for November, which rose 0.5% monthly and 4.0% annualized.
The UK RPI for December rose 1.1% monthly and 7.5% annualized. Economists predicted an increase of 0.7% and 7.1%. Forex traders can compare this to the UK RPI for November, which rose 0.7% monthly and 7.1% annualized. The UK Core RPI for December rose 1.1% monthly and 7.7% annualized. Forex traders can compare this to the UK Core RPI for November, which rose 0.8% monthly and 7.2% annualized.
The UK PPI Input for December decreased 0.2% monthly and increased 13.5% annualized. Economists predicted an increase of 0.7% and 13.7%. Forex traders can compare this to the UK PPI Input for November, which increased 1.5% monthly and 15.2% annualized. The UK PPI Output for December rose 0.3% monthly and 9.3% annualized. Economists predicted an increase of 0.6% and 9.4%. Forex traders can compare this to the UK PPI Output for November, which rose 1.0% monthly and 9.4% annualized. The UK PPI Core Output for December rose 0.5% monthly and 8.7% annualized. Forex traders can compare this to the UK PPI Core Output for November, which rose 0.8% monthly and 8.2% annualized.
The South African CPI for December rose 0.6% monthly and 5.9% annualized. Economists predicted an increase of 0.4% and 5.7%. Forex traders can compare this to the South African CPI for November, which rose 0.5% monthly and 5.5% annualized. The Core CPI for December rose 0.3% monthly and 3.4% annualized. Economists predicted an increase of 0.2% and 3.3%. Forex traders can compare this to Core CPI for November, which rose 0.1% monthly and 3.3% annualized.
South African Retail Sales for November are predicted to increase by 1.9% annualized. Forex traders can compare this to South African Retail Sales for October, which increased 1.8% annualized.
The forecast for the GBP/ZAR remains bullish after this currency pair corrected into its gradually ascending Ichimoku Kinko Hyo Cloud. Short-term volatility may increase as the Tenkan-sen descends, while the Kijun-sen flatlined. Adding to the bullish outlook is the CCI after completing a breakout from extreme oversold territory. A second test of the -100level is likely before buyers step in. Will bulls take advantage of current developments and pressure the GBP/ZAR 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/ZAR remain inside the or breakdown below the 20.9100 to 21.1700 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Long Position @ 21.0500
- Take Profit Zone: 21.7500 – 22.0000
- Stop Loss Level: 20.7800
Should price action for the GBP/ZAR breakout above 20.9100, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Short Position @ 20.7800
- Take Profit Zone: 20.2800 – 20.4800
- Stop Loss Level: 20.9100
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