UK inflation shock looks “permanent”, probably the case for EU, Asia, and US too

Source: Tradingview April 19 2023 7:20 UTC

Market Talk

UK March inflation data looks “sticky”

The latest UK consumer price index (CPI) is higher across the board, suggesting that inflation is not going back toward long term averages anytime soon.

• UK March inflation data above the Bank of England’s (BoE) expectations
• Wage inflation remains strong
• Increased odds for the BoE to hike

GBP FX market reaction:

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Upcoming Events:

Today’s economic calendar

• US weekly crude oil inventories on deck: WTI crude oil current price $80.17 +20% last 30 days, WTI remains bullish above the $73.15 support; resistance at $83; upside prospects above $83 could place $87.50 in sight

Source: Quandl April 19 2023 6:45 UTC

Earnings Season:

On deck today:

• Tesla earnings due before the start of today’s US trading session; Tesla is expected to report lower earnings vs previous period, however, revenue is expected to be higher vs previous period.
• Tesla share price +43% during the last three months, current price $184.31; support at $181.99 (38.2% retracement from 13 week high); resistance at $188.21 (38.2% retracement from 4 week low)

Source: US100 earnings calendar April 19 2023 6:45 UTC

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Today’s trading bullets

GBP / USD finds support above the 1.2360s

Source: Tradingview April 19 2023 7:45 UTC

• GBP / USD Current price appears to be holding above the 1.2360s support area which increases the prospects for a resumption of the prevailing uptrend to continue. Downside risk below 1.2360 support places 1.2190s in sight, while upside price extension towards 1.26 remains on the table provided price can clear above the 1.2525 resistance.