CPI/PPI/RPI/HPI , watching like a (bearish)hawk
Good morning dear forex friends!
Fomc ahead, debatable whether it’ll be a dovish or not hike tomorrow, nevertheless hike and looking at the latest numbers, there is little reason for them to be dovish, I’m not selling USD for now. There are still the tax and Infrastructure talks and we could see some USD repatriation into yearend.
I am again mildly bearish GBP. I reckon the Brexit trade deals will be the same political farce as the divorce bill has been. It’ll weigh on GBP, not only through sentiment but in real terms as during the Transition Period, UK won’t be able to negotiate as many trade deals as they would like not knowing where they stand with EU. That may start to weigh.
And finally the price action, having been unable to keep the 1.35 over the positive divorce bill outcome, not even reaching previous high, tells me there’s not a lot of juice in the tank.
Back to CPI, in the assumption the numbers are not totally blowing up to the topside, I ‘ll be looking to sell either into a 1.3400/25 rally with a stop over 1.3480 or a break of 1.3320, add through 1.3280 if we get the break .More later,
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