Source: PaxForex Premium Analytics Portal, Fundamental Insight
The UK CPI for May is predicted to increase by 0.5% monthly and 8.4% annualized. Forex traders can compare this to the UK CPI for April, which rose 1.2% monthly and 8.7% annualized. The Core CPI for May is predicted to expand by 0.6% monthly and 6.8% annualized. Forex traders can compare this to Core CPI for April, which increased 1.3% monthly and 6.8% annualized.
The UK PPI Input for May is predicted to drop by 0.5% monthly and rise by 1.2% annualized. Forex traders can compare this to the UK PPI Input for April, which contracted by 0.3% monthly and increased by 3.9% annualized. The UK PPI Output for May is predicted to decrease by 0.1% monthly and rise by 6.6% annualized. Forex traders can compare this to the UK PPI Output for April, which was flat at 0.0% monthly and accelerated by 5.4% annualized. The UK PPI Core Output for May is predicted to increase by 0.1% monthly and 4.7% annualized. Forex traders can compare this to the UK PPI Core Output for April, which was flat at 0.0% monthly, and surged 6.0% annualized.
The UK RPI for May is predicted to rise by 0.5% monthly and 11.2% annualized. Forex traders can compare this to the UK RPI for April, which increased by 1.5% monthly and 11.4% annualized. The UK RPI Excluding Mortgage Interest Payments for May is predicted to increase by 0.7% monthly and 10.1% annualized. Forex traders can compare this to the UK RPI Excluding Mortgage Interest Payments for April, which rose 1.4% monthly and 10.4% annualized.
UK Public Sector Net Borrowing for May is predicted at £14.93B, and UK Public Sector Net Borrowing excluding Banking Groups at £7.324B. Forex traders can compare this to UK Public Sector Net Borrowing for April, reported at £24.74B, and UK Public Sector Net Borrowing excluding Banking Groups, reported at £13.667B.
The South African CPI for May is predicted to increase by 0.4% monthly and 6.5% annualized. Forex traders can compare this to the South African CPI for April, which rose by 0.4% monthly and 6.8% annualized. The Core CPI for May is predicted to expand by 0.2% monthly and 5.2% annualized. Forex traders can compare this to Core CPI for April, which increased by 0.5% monthly and 5.3% annualized.
The forecast for the GBP/ZAR remains cautiously bullish after this currency pair corrected into its upward-shifting Ichimoku Kinko Hyo Cloud. Volatility could rise with the Tenkan-sen descending and the Kijun-sen flat. Traders should monitor the CCI following its breakout from extreme oversold territory. This technical indicator has plenty of upside potential, and a move above zero could reignite bullish momentum. Can bulls regain control over the GBP/ZAR and push price action into its horizontal resistance area and a fresh 2023 high? 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 23.2790 to 23.5540 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 23.4570
- Take Profit Zone: 24.4480 – 24.7230
- Stop Loss Level: 23.1180
Should price action for the GBP/ZAR breakdown below 23.2790, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 23.1180
- Take Profit Zone: 22.6930 – 22.9255
- Stop Loss Level: 23.2790
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