-
Will UK CPI data drive cable even lower?
-
USDJPY still skyrockets ahead of Japanese CPI.
-
China GDP may help AUDUSD exit from trading range.
UK CPI data – GBP/USD
Inflation in the United Kingdom dropped to 3.4% in February, and experts predict that it will fall to 3.1% in March. It is anticipated that the core figure will likewise fall once more. On Friday, eyes will be on the March retail sales figures to see if spending is increasing.
Currently, cable is trading higher after the strong sell-off on Friday, penetrating the long-term sideways channel to the downside. Incoming data might potentially lead to a decline in price if it indicates that the Bank of England is still planning to begin cutting rates in August, even while the Fed’s timeframe has begun to move to September. More losses may take the pair towards the 1.2370 support level, registered on November 17. Notably, the pair is holding beneath the simple moving averages (SMAs) and the technical oscillators are moving in oversold territories.
Japan CPI data – USD/JPY
Japanese inflation rose dramatically in February following a year-long drop. Core CPI, which excludes fresh food, climbed to 2.8% from 2.0%. While total CPI may have increased slightly, the core figure, released on Friday, is expected to fall to 2.6%, remaining above the Bank of Japan's 2% objective. Governor Ueda has hinted that the Bank of Japan may raise rates again at the end of the year.
In FX markets, USDJPY is creating higher highs over the last four days, touching a fresh 34-year peak of 153.85 today. The extension of this aggressive rally may boost the market towards the 161.8% Fibonacci extension level of the downward wave from 151.95 to 140.20 at 159.15 but first traders need to be cautious about the psychological numbers of 154.00, 155.00. Any downside retracements could lead the market until the immediate support lines of 151.95, which overlaps with the 20-day SMA and the 150.87 barrier.
China GDP – AUD/USD
China will release its GDP figures on Tuesday as hopes for its economic recovery grow. The economy possibly grew by 1.4% quarter-on-quarter in the three months ending in March. But the markets might be more interested in the fact that the annual rate is forecast to have dropped from 5.2% to 4.6%.
AUDUSD has been developing within a trading range since mid-January, facing resistance near the 0.6635 level and support at 0.6440. An immediate turning point for possible upside pressures may be the 0.6440 barrier, heading towards the 200-day SMA at 0.6535. However, any tumbles beneath this support could open the way for steeper decreases towards the 0.6340 bar. The technical oscillators are showing some mixed signals as the MACD is moving horizontally beneath the zero level, while the RSI is pointing slightly up in the bearish region.
Forex trading and trading in other leveraged products involves a significant level of risk and is not suitable for all investors.
Recommended Content
Editors’ Picks
![EUR/USD stays below 1.1100, looks to post weekly losses](https://editorial.fxstreet.com/images/Markets/Currencies/Majors/EURUSD/european-euro-coin-on-top-of-american-dollar-bill-11292130_XtraSmall.jpg)
EUR/USD stays below 1.1100, looks to post weekly losses
EUR/USD continues to trade in a narrow range below 1.1100 and remains on track to end the week in negative territory. Earlier in the day, monthly PCE inflation data from the US came in line with the market expectation, failing to trigger a reaction.
![GBP/USD struggles to find a foothold, trades near 1.3150](https://editorial.fxstreet.com/images/Markets/Currencies/Majors/GBPUSD/iStock-157771037_XtraSmall.jpg)
GBP/USD struggles to find a foothold, trades near 1.3150
GBP/USD stays on the back foot and trades in negative territory at around 1.3150 on Friday. The US Dollar holds its ground following the July PCE inflation data and doesn't allow the pair to stage a rebound heading into the weekend.
![Gold retreats toward $2,500 ahead of the weekend](https://editorial.fxstreet.com/images/Markets/Commodities/Metals/Gold/gold-bars-50657756_XtraSmall.jpg)
Gold retreats toward $2,500 ahead of the weekend
Gold stays under modest bearish pressure and declines toward $2,500 in the American session on Friday. The 10-year US Treasury bond yield edges higher toward 3.9% after US PCE inflation data, causing XAU/USD to stretch lower.
![Week ahead – Investors brace for NFP amid Fed rate cut speculation](https://editorial.fxstreet.com/images/Macroeconomics/EconomicIndicator/Employment/NFP/america-back-to-work-gm178972493-25143312_XtraSmall.jpg)
Week ahead – Investors brace for NFP amid Fed rate cut speculation
Here comes another NFP week, with investors eagerly awaiting the results as they try to discern the size and pace of the Fed’s forthcoming rate cuts. The weaker than expected July numbers triggered market turbulence, instilling fears about a potential recession in the US.
![Easing Eurozone inflation to back an ECB rate cut in September](https://editorial.fxstreet.com/images/Macroeconomics/Countries/Europe/Eurozone_countries/Eurozone/eu-flags-flying-at-the-european-commission-building-brussels-belgium-24759579_XtraSmall.jpg)
Easing Eurozone inflation to back an ECB rate cut in September Premium
Eurostat will publish the preliminary estimate of the August Eurozone Harmonized Index of Consumer Prices on Friday, and the anticipated outcome will back up the case for another European Central Bank interest rate cut when policymakers meet in September.
![Moneta Markets review 2024: All you need to know](https://editorial.fxstreet.com/images/IT/Testing/Review/FXSBadgeCertifiedBackg_XtraSmall.png)
Moneta Markets review 2024: All you need to know
VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.