Saturday, February 24, 2018

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FOREX NEWS AND MARKET ANALYSIS

Feb 13 - Top Economic Events & Trade Setups

Author: Arslan Butt, Commodities & Indices Analyst/Tuesday, February 13, 2018/Categories: Live Market Updates

Good morning, traders. We kickstarted the week with some brilliant trades in DAX, CAC, SPX, and Gold. Today I'm expecting some action during the European and London session, so brace yourself for more forex trading signals. Here's what you know before trading today...  

 

Economic Events Watchlist

Great Britain Pound - GBP

Today we may see some nice trade opportunities in the Pound due to the inflation figures.

CPI y/y is due at 9:30 (GMT) with a negative forecast of 2.9% in 2018's first release vs. 3.0% in Dec 2017. After the BOE shifted it's sentiment to hawkish, market expectations for a rate hike in May have grown substantially. Thus, a rise in inflation will take the rate hike sentiment to the next level.

 

PPI Input m/m - The Producer Price Index figure is coming out at 9:30 (GMT) with a negative forecast of 0.7% vs. 0.1%. This is a leading indicator of consumer inflation. When manufacturers pay more for goods, the higher costs are usually passed on to the consumer which leads to higher prices.

 

US Dollar - USD

FOMC Member Mester Speaks - The FOMC member is due to speak about the economic outlook and monetary policy at the Dayton Area Chamber of Commerce Government Affairs Breakfast at 13:00 (GMT).

 

GBP/USD - Bullish Harmonic Pattern Rolling

The major currency pair GBP/USD keeps on trading below the solid resistance area of 1.4000. But recently, the Cable has completed a bullish harmonic pattern with C to D wave, completing at $1.3840.

GBP/USD - 60 Min ChartGBP/USD - 60 Min Chart

Since the leading indicators are holding in a buying zone, we may see a bullish reversal in the pair. But wait, you simply can't ignore the UK Inflation figure we discussed above. Actually, the CPI data will work as a catalyst to determine the future trends in the market. Check out FX Leaders News Trading Strategy to learn how to trade the CPI figure profitability.

 

GBP/USD - Key Trading Levels

Support     Resistance

1.3804       1.3884

1.376         1.392

1.3724       1.3964

Key Trading Level:    1.384

 

GBP/USD Trade Plan

Investors are advised to keep a close eye on $1.3835. Above this level the GBP/USD could give us a buying opportunity with a stop below $1.3815 and take profit at $1,3870. Good luck!

 

Arslan Butt, Commodities & Indices Analyst

Arslan Butt is our Lead Commodities and Indices Analyst.

Arslan is a professional market analyst and day trader. He holds an MBA in Behavioral Finance and is working towards his Ph.D.

Before joining fxleaders.com Arslan served as a senior analyst in a major brokerage firm.

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