Source: ForexYard
After quite a bearish trading session yesterday, the USD is continuing to lose support. The EUR/USD is continues its rise above the 1.4000 level, whilst the GBP/USD is trading at the 1.6275 level.
The most dominant currency and commodity today are the British Pound and Gold. The GBP showed much strength recently, rising against its major currency pairs yesterday. Now we wait for the GBP/USD to hit 1.6350 today.
Yesterday, Gold made the largest daily gains since July 1st of about $10. The extremely weak Dollar in yesterday’s trading played a large part in pushing-up Gold prices. A weaker USD again today, will lead to much of the same behavior. However, a turn of events may see the recent bullish trend of Gold short-lived.
Leading publications for today:
• British CPI, 08:30 GMT – The Consumer Price Index is a leading inflation indicator that measures the change in the price of goods and services, which are purchased by British consumers. The forecast is 1.8%, meaning the CPI was slightly lower this month than last month’s 2.2%. Such a result may lead to bearishness in the Pound as the British government and the Bank of England (BoE) feel that nearer to 3% is healthier for the Pound and British economy.
• German ZEW Economic Sentiment, 09:00 GMT – A leading measure of economic growth in Germany and the Euro-Zone. It evaluates the level of a diffusion index, which is based on a survey of German analysts and institutional investors. The forecasted result is 48.0, considerably better than the previous 44.8 publication. Such a result could drive up the EUR today due to the result signaling an improvement in the main economy of the Euro-Zone.
• U.S. Core Retail Sales, 12:30 GMT: Three major publications are set to be published simultaneously from the U.S. These include the Core Retail Sales, PPI (Producer Price Index), and Retail Sales. All 3 of these publications provide accurate signals as to the direction of the U.S. economy. If the figures are weaker than expected, then the USD may record another bearish session today.
Forex Market Analysis provided by ForexYard.
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