Source: PaxForex Premium Analytics Portal, Fundamental Insight
UK CPI for April is predicted to increase 2.6% monthly and 9.1% annualized. Forex traders can compare this to the UK CPI for March, which rose 1.1% monthly and 7.0% annualized. The Core CPI for April is predicted to expand 0.8% monthly and 6.2% annualized. Forex traders can compare this to Core CPI for March, which increased 0.9% monthly and 5.7% annualized.
The UK PPI Input for April is predicted to increase 1.1% monthly and 19.0% annualized. Forex traders can compare this to the UK PPI Input for March, which rose 5.2% monthly and 19.2% annualized. The UK PPI Output for April is predicted to expand 1.0% monthly and 12.5% annualized. Forex traders can compare this to the UK PPI Output for March, which increased 2.0% monthly and 11.9% annualized.
The UK RPI for April is predicted to rise 3.4% monthly and 11.1% annualized. Forex traders can compare this to the UK RPI for March, which rose 1.0% monthly, and 9.0% annualized.
The South African CPI for April is predicted to increase 0.6% monthly and 5.9% annualized. Forex traders can compare this to the South African CPI for March, which rose 1.0% monthly and 5.9% annualized. The Core CPI for April is predicted to expand 0.4% monthly and 3.8% annualized. Forex traders can compare this to Core CPI for March, which increased 0.8% monthly and 3.8% annualized.
Inflation remains front and center, and traders will get another dose of data from the Eurozone, the UK, Canada, and South Africa. US Fed Chief Powell confirmed yesterday that the Fed would hike interest rates until inflation subsides, suggesting 25 basis points to 50 basis points at each meeting this year, with the next one expected at 50 basis points. Economic indicators remain mixed, but US data yesterday suggested consumers dip into savings to keep spending. It is a short-term bullish measure but a long-term devastating development.
The forecast for the GBP/ZAR remains cautiously bullish as this currency pair is gradually drifting through its ascending Ichimoku Kinko Hyo Cloud. Volatility could rise with the Kijun-sen flat, suggesting the absence of short-term bullishness, while the Tenkan-sen maintains a minor bullish stance. Traders should monitor the CCI after collapsing from extreme overbought territory and bouncing higher from oversold conditions above the zero line. Should this technical indicator remain near current levels, more upside is likely to follow. Can bulls keep the momentum going and push the GB P/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 breakout above the 19.7830 to 20.0330 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 19.8800
- Take Profit Zone: 20.5150 – 20.7615
- Stop Loss Level: 19.5000
Should price action for the GBP/ZAR breakdown below 19.7830, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 19.5000
- Take Profit Zone: 19.0330 – 19.1500
- Stop Loss Level: 19.7830
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