UK inflation report should keep GBP under pressure
The Inflation Report, due out at 9.30GMT today, has potential to influence the near-term GBP outlook, says RBS strategy team. "While the MPC will not want to be backed into a corner on cutting the base rate ahead of an assessment of the FLS (Funding for Lending Scheme), there should be enough dovish sentiment to keep GBP under pressure" RBS notes.
A quiet session ahead in London in terms of EUR macro data related, starting at 06:00 GMT with German current account and trade balance, followed 30 minutes later by French BoF business sentiment, and trade balance 15 minutes after, Spanish industrial production at 07:00 GMT, and probably most important, German industrial production at 10:00 GMT. In the sovereign debt front Germany will auction up to € 4B in 10 year bunds at 06:00 GMT, with 10 year yields on the rise since record lows at 1.12% on July 23, last at 1.48%. (fxstreet.com)
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UPCOMING EVENTS :
2012-08-08 09:30 GMT | U.K. Bank of England Quarterly Inflation Report
2012-08-08 10:00 GMT | Germany. Industrial Production (YoY) (Jun)
2012-08-08 17:00 GMT | U.S. 10-Year Note Auction
2012-08-08 23:50 GMT | Japan. Foreign bond investment
FOREX NEWS :
2012-08-08 04:37 GMT | EUR/USD pegged near 1.24 for third day
2012-08-08 04:37 GMT | GBP/USD flat as market awaits UK inflation outlook
2012-08-08 03:57 GMT | BoE to lower inflation, GDP growth forecasts - UBS
2012-08-08 03:47 GMT | USD/JPY calmed around 78.50 ahead of BoJ
EURUSD : 1.23902 / 1.23907
DAILY WEEKLY MONTHLY
1.2595 | 1.2519 | 1.2443
1.2368 | 1.2298 | 1.2222
SUMMARY : Up
TREND : Sideway
MA10 : Bearish
MA20 : Bearish
STOCHASTIC : Neutral
MARKET ANALYSIS - Intraday Analysis
EURUSD made an attempt to go higher yesterday but fail to climb above our suggested resistance level at 1.2443 (R1), strong technical level. We expect retest of this level later on today. Brake here is required to enable next targets at 1.2519 (R2) and 1.2595 (R3). At the moment instrument is moving towards to our next support levels at 1.2368 (S1). If it breaks below it we expect the price to form a correction towards to next support at 1.2298 (S2) and then we might see reversal of tendency (daily).
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GBPUSD : 1.56082 / 1.56091
DAILY WEEKLY MONTHLY
1.5768 | 1.5726 | 1.5683
1.5588 | 1.5545 | 1.5503
SUMMARY : Sideway
TREND : Downward penetration
MA10 : Bearish
MA20 : Bearish
STOCHASTIC : Neutral
MARKET ANALYSIS - Intraday Analysis
GBPUSD appreciated yesterday above our suggested resistance level at 1.5618 and met our target at 1.5666. Next resistance level for today locates at yesterday high – 1.5683 (R1). Brake here would suggest next target at 1.5726 (R2) and any further rise will then be limited to 1.5768 (R3). However, we expect the price to retest our next support level at 1.5588 (S1). A break below that level would suggest next targets at 1.5545 (S2) and 1.5503 (S3). In focus Bank of England Quarterly Inflation Report at 09:30 GMT that might bring additional volatility on the markets.
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USDJPY : 78.423 / 78.429
DAILY WEEKLY MONTHLY
79.26 | 79.00 | 78.77
78.37 | 78.13 | 77.92
SUMMARY : Up
TREND : Sideway
MA10 : Bearish
MA20 : Bullish
STOCHASTIC : Neutral
MARKET ANALYSIS - Intraday Analysis
USDJPY rose yesterday and met our suggested target at 78.57. Strong psychological level stay at 78.77 (R1), brake here might determine medium term trend development and change of the market sentiment. In such scenario we would suggest targets at 79.00 (R2) and 79.26 (R3). On the other hand market still moves in range mode and break below next support level at 78.37 (S1) might expose our next target at 78.13 (S2). Further intraday fall with then be limited to 77.92 (S3), final support of the medium term sideways channel.
Source: FX Central Clearing Ltd, ECN Forex Trading System | What Is Forex | Forex Live | FXCC