Inflation expectations are heating up

16 May, 2018

Yesterday, the market expected that the German and Eurozone GDP data and UK employment data will slow down compared with the previous month, European currencies fell. Then, the US retail sales were in line with expectations. Core retail sales increased, U.S. inflation expectations are heating up. Ten-year US Treasury yields have risen and the dollar has rebounded. The dollar risen against major currencies and gold.

Today's attention in CPl data in Germany and the euro zone in the afternoon. The data reflects that inflationary prices in the euro area are reflected in monetary policy. Observe the economic data with low importance in the United States at night.

Today's proposal:

1.1855/1.1875 resistance
1.1805/1.1785 support
European data failed to stimulate the euro yesterday, while the US rate hike was expected to heat up and the euro fell. If the euro 
zone’s CPI is lower than expected today, the euro will have a chance to fall and 1.1800 may fall. On the contrary, the data beat 
expectations and the euro rebounded, but it is estimated that it will not exceed the resistance of 1.1875.

1.3530/1.3550 resistance
1.3475/1.3455 support
UK employment data disappointed the market yesterday, and the fall in the euro also affected the sterling pound's decline. The market 
expects the U.S. economy to accelerate its performance and the sterling pound has downward pressure.

0.9980/0.9965 Support
1.0035/1.0050 resistance
The trend of the euro will dominate the expectations of the euro under the development of the Swiss franc decline, will be bad Rui 
Lang, US dollar against CHF may continue to rise. However, short-term attention to the performance of the European data in the 

110.55/110.75 resistance
110.05/109.85 Support
As expected yesterday, USDJPY had a chance to explore 110. At present, the US dollar has strengthened, and the US dollar has the 
opportunity to keep rising against the Japanese yen. However, we must pay attention to the decline of the Nikkei, which may affect 
the decline of the US dollar against the yen.

0.7465/0.7480 resistance
0.7425/0.7410 support
The market expected the Australian Central Bank’s monetary policy to be cautious and negative for the Australian dollar. With the 
short-term US economic growth prospects better than Australia, the Australian dollar's adjusted decline may continue.

0.6870/0.6885 resistance
0.6835/0.6820 support
As forecasted yesterday, the New Zealand dollar will have the opportunity to continue falling in the short term due to the increase 
in the US dollar and the adjustment pressure of the Australian dollar. The short-term trend of the New Zealand dollar is recommended. 
The Australian dollar can be referred to.

Information provided by ATFX Chief Analyst of Asia Pacific: Martin Lam

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