Source: ForexYard
The bears remain in control of the markets and may remain so today as liquidity could be on the light side due to the celebration of Armistice/Veterans Day. Even with the holiday a few important data releases are found on the economic calendar.
UK PPI is will be released today and consensus estimates are for the reading to be flat at 0.0%. This would be in-line with BoE expectations for UK inflation to have peaked, though headline inflation has topped out at 5.2%. Markets are expecting inflation to decline and cable could weaken if inflation is in fact below estimates. GBP/USD support is found at yesterday’s low of 1.5867. A break here could expose the October 20th support of 1.5680. Resistance is located at 1.5985.
UoM consumer sentiment will be released today but with US banks closed in observation of Veterans Day the reaction to the report may be muted.
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