Originally updated: 08:00
Trading Bias: Neutral
Currency pair: None
Current Sentiment: None
In today’s trading session we will be awaiting key economic data from UK CPI to provide an opportunity to get into the market.
Focus today will turn to UK CPI data. It is expected to remain at 0.0% y/y from a previous of 0.0% y/y. However, if this number comes in negative, it could weigh on the GBP over the rest of the session. We’ve also got UK elections in the forefront. It is keeping the GBP under pressure regardless. If we get a negative reading of UK CPI then we could look at selling the GBP over the rest of the day.
Also, if we get a positive data from the US later in the session, we could see the USD regain some strength after it pulled away from its highs yesterday. If this is the case then we could look at buying the USD against weaker currencies like EUR and GBP (if the data is bad).
At this stage of the session, with limited news flow to present a reason to get into the markets I will be waiting for pairs to approach key levels of support/resistance and trade the overall trend in line with the fundamentals. This will of course be in conjunction with any news flow we have that provides the market with fresh sentiment and a reason to start getting involved in the market.
Other Market Moving News:
The JPY modestly outperformed for a third day with EUR/JPY touching 2 year lows – helped by comments from PM adviser Hamada yesterday.
Looking ahead we’re waiting for UK CPI, which could send the GBP lower throughout the session if we get a negative reading.