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CFDs come with a high risk of losing money rapidly due to leverage. 71% of accounts lose money when trading CFDs with this provider. You should understand how CFDs work and consider if you can take the risk of losing your money.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

71% of retail investor accounts lose money when trading CFDs with this provider.

Market Insights

Trading Insights: Big drop in UK inflation, US Fed worried

Copy of Blog Images - Skilling - 2023-07-19T112455.068

Market Commentary

GBP weakens across the board

  • UK Inflation dropped to its lowest in 9 months but remains above the Bank of England’s (BOE) target.

Screenshot 2023-07-19 112744

EUR/GBP bullish conditions

EUR/GBP further upside extension move toward the 0.8750s can not be ruled out after price broke above its 50 day moving average which also happened to intersect at the key 0.8660 resistance area. Downside risk seen below the 0.8454 key support.

Screenshot 2023-07-19 112817

Is the US Fed worried that a still strong US housing market could increase the risk that they will have to keep on hiking?

  • The US Fed has already raised rates by 5% since March 2022, this has been the fastest pace of interest rate hikes since the 1970s.
  • At the same time, the Fed’s mission to get price stable and lower inflation by hiking interest rates has failed to cool the US housing market despite the higher cost of borrowing for home buyers.

Bottom line: Traders will be looking at the upcoming US housing data for any new trends in order to try and stay ahead of the rate curve.

Screenshot 2023-07-19 112844
Source: US Census Bureau / Trading view July 19 2023 8:50 UTC

The above chart illustrates the 52 week US new housing starts. New housing starts reports the number of new housing construction projects that have started in the previous month.

Today’s economic calendar

US new housing starts on deck today at 12:30 UTC

Screenshot 2023-07-19 112920
Source: TradingView / J. Knobel July 19 2023 8:33 AM UTC


Price action commentary:

WTI Crude Oil current price $76.22 looks bullish above the $72.30 support. Could the next leg up be towards $78?

Screenshot 2023-07-19 112940

Do you have an opinion on where financial markets are heading? Express your opinion and trade with CFDs.

Not investment advice. Past performance does not guarantee or predict future performance.