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 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
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!