Trading Insights: Big drop in UK inflation, US Fed worried
GBP weakens across the board
- UK Inflation dropped to its lowest in 9 months but remains above the Bank of England’s (BOE) target.
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.
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.
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
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?
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Not investment advice. Past performance does not guarantee or predict future performance.
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