Waiting for US CPI data

Europe and Great Britain CPI data has been released. Although British CPI was slightly lower than expected British Pound fell across the board, particularly against commodity currencies. It is consolidating now, but in the wake of tomorrow’s data (Bank of England minutes) we can expect Pound weakness to continue. This week is full of CPI releases. Markets are now positioning themselves for US CPI that is to be released at 12:30 GMT today. From current technical action you can see that traders are bearish towards US dollar and are expecting negative data from United States. 

One can even see sort of a rounding base in eur/usd after correcting from 1.3200 highs that was reached after Ben Bernanke’s speech regarding economy, interest rates and ending of stimulation process. Since the sentiment for US dollar is bearish the data has to be much better than expected in order to stop the greenback from falling. If it simply meets the expectations you should not be surprised to see dollar continuing on its’ downtrend path. This should also be reflected in eur/gbp rise and gbp/chf fall. There is pretty good correlation among the above mentioned pairs. I keep on selling Pound and US dollar at the moment.

GBP CPI better but Pound falls

Today is one of those days where most traders do not understand what happens. A much awaited Great Britain CPI numbers were released today and the data came out better than expected. However, British Pound fell against major currencies. Neither me, nor any Forex specialist would be able to explain what and why it is happening, but it does happen from time to time. Does it mean that big market dogs want to take British Pound lower? Maybe, anyway there is even more important news scheduled for Pound tomorrow and that is Bank of England minutes. 

I hope this data will be accepted in a logically understandable fashion and the direction of the currency will reflect its’ fundamentals and not some big boys sentiment. I am slightly bullish in gbp/chf (lost on a small long position today) and intend to long gbp/jpy tomorrow if the current resistance is taken out.

Data from Europe and Canada tomorrow

Tomorrow is pretty important day. We may see fundamental things rock the Forex market at large. The first one is Euro zone consumer price index (cpi). It comes at 9:00 GMT. Be aware of that as Euro pairs will probably have significant impact from the event. The second one is Canadian gross domestic product (GDP). It comes out at 12:30 GMT. As you may understand all Canadian dollar pairs will be moved by the news. So, if you enjoy trading fundamental events be ready with your charts and specific currencies around the times I mentioned above. Good luck!