UK CPI in focus

18 October, 2016

Sterling/Dollar staged an incredible rebound during early trading on Tuesday with prices lurching towards 1.2270 and this has nothing to do with an improved sentiment towards the Pound but Dollar weakness. With the Sterling repeatedly crashing to new lows amid the hard Brexit fears, the technical bounce displayed should be of no surprise and may even offer an opportunity for bears to install another round of selling. The persistent media reports of disagreements between the Chancellor and his cabinet over the Brexit scenario has sparked discussions of political risk while uncertainty over the health of the UK economy after the article 50 is triggered continues to weigh on sentiment.

Investors may direct their attention towards the inflation report for September which is expected to rise to a near two year high as a weaker pound post-Brexit bolsters import costs. In normal circumstances a healthy rise in inflation would be warmly welcomed with sentiment towards the UK economy receiving a welcome boost. It must be kept in mind that the Brexit fueled Sterling crash has not made these normal circumstances with fears already mounting over inflation reaching 2.6% in 2017. The GBPUSD could still be exposed to further punishment moving forward as the terrible cocktail of hard Brexit jitters, uncertainty, and rising Fed rate hike expectations entice sellers to attack.


Source link  
Yuan approaches critical level

The trading week kicked off with a panicked sell-off in Chinese equities which simply expresses growing fears in financial markets. Rising U.S...

Gold shines on Italy turmoil

Gold is poised to remain in the limelight this week after aggressively appreciating roughly $18 in a three-hour window. The yellow metal surprised markets...

Fed hike failed to satisfy dollar bulls

Despite U.S. President Donald Trump's dissatisfaction with the Fed's monetary policy tightening measures, the Fed as expected raised interest...


Trump makes mark at United Nations

Although a variety of headlines are circulating following the speech from President Trump at the United Nations, financial market movements are slightly...

Dollar path hinges on Fed dot plot

The U.S. Dollar has enjoyed a robust rally over the past seven months. An economy growing above potential rate, fiscal stimulus, low unemployment...

Risk aversion returns as tariffs take effect

Politics and trade tensions are expected to be the key market drivers this week. President Trump's tariffs on $200 billion worth of Chinese goods...


Investors await China's response

U.S. President Trump moved forward with imposing 10% tariffs on $200 billion of Chinese imports effective next week. Trump's move has obviously...

EM Currencies slide as Dollar appreciates

Emerging market currencies have been treated without mercy by a broadly stronger Dollar, yet again. The Dollar Index appreciated to its highest level this year...

Pound crumbles as UK inflation fails to rise

Repeated signs of easing inflationary pressures in the United Kingdom could plant a seed of doubt among investors about whether the Bank...


In the past 24 hours Bitcoin has gained 4.97% and reached $6645.19278191. Open your trading account with the best cryptocurrency brokers on special terms today.

In the past 7 days the EUR/USD pair has gained 0.5919% and is now at $1.1596. Start trading and making money on Forex today.

In the past 7 days Ethereum has lost -8.8% and is now at $209.180805315. Have the most popular cryptocurrencies compared online 24/7.


Top Brokers offering Daily Forex Market Reviews


Forex Currencies Forecasts


Top 10 Forex Brokers 2018

# Broker Review
1easyMarketseasyMarkets91%
2FXTMFXTM88%
3HYCMHYCM87%
4Alfa-ForexAlfa-Forex86%
5FxProFxPro85%
6FIBO GroupFIBO Group84%
7OctaFXOctaFX83%
8HotForexHotForex82%
9FXCMFXCM80%
10AvaTradeAvaTrade77%
  


Share: