Current Market Sentiment

Current Sentiment:
During yesterday’s NY trade US Housing Starts came in at its highest level since October 2007. In response to the data Barclays raised its US GDP tracker to 2.7%. WTI rallied nearly a dollar on the day, causing the CAD to strengthen for the session. Also, as expected, the GDT price index showed its first gain after 20 weeks of consecutive declines.

During Asia, Japan’s trade deficit expanded to Y268.1 billion, analysts were expecting a deficit of only Y56.7 billion. July’s deficit widened from Y69.0 billion in June. This was the fourth consecutive monthly deficit. There was very little reaction from the yen, and overall the session was very quiet.

Today we have the US Inflation reports on tap, along with the FOMC meeting minutes. The CPI print did show some pressure in June at 0.3%, however less is expected for July with a headline expectation of a moderate 0.2% gain. This print will get close attention as traders look to see if it continues to move toward the Fed’s 2% target. Inflation, which is well below target, is a major factor in the Fed’s interest rate decision.

Trade Call:
Our trade call is to sell EURGBP on a retracement back to 0.7063 which marks a previous support level, with the 38% retracement from yesterday’s high and the daily central pivot just a few pips away at 0.7059. We will also look ahead to the US CPI print for other USD based opportunities.

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Source:: Current Market Sentiment

About the Author
Jarratt Davis is the world’s ranked #2 (2008-2013) Forex Trader by Barclays FX Hedge Index, following years of mastering his art as a self employed trader Jarratt has now entered the field of education and delivers the most robust Forex education package on the market. Jarratt’s mentorship is one of the only programs on the market that is conducted by a verified professional trader. Forex Alchemy readers can get the FREE mini course where Jarratt gives away some of his secrets to success by Clicking Here... [space height="20"] [social type="facebook"][/social] [social type="twitter"][/social] [social type="google-plus"][/social] [social type="youtube"][/social]

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