Trading plan for EUR/USD and GBP/USD on October 19
October 19, 2023 8:22 am
The market remained indifferent to the UK inflation, which remained at 6.7%. However, pound eventually weakened noticeably, even though the stability of inflation at a high level indicates the inevitability of further tightening of the Bank of England’s monetary policy, which should contribute to the strengthening of pound.
As for dollar, it rose globally due to the absence of any macroeconomic data or other news that could influence market sentiment. Although at the time of the movement, inflation data for the eurozone came out, it had no relevance to the matter because the final data only confirmed the fact that the growth of consumer prices had slowed from 5.2% to 4.3%.
However, the market already took into account the preliminary estimates a couple of weeks ago, so the recent movement may just be speculation. Nevertheless, dollar climbed up, and the jobless claims data scheduled to be published in the US today will not affect the situation, especially since the total number may increase by only 8,000. Dollar may either continue to rise, or start to return to the levels it traded at before yesterday’s increase.
EUR/USD bounced off the resistance level of 1.0600, resulting in an increase in short positions. This resumed the downward trend, which, if continues, may push the pair down below 1.0500 level.
GBP/USD completed the sideways movement and prolonged its downward trend. This led to an increase in short positions, which, if continues, may push the pair down to the psychological level of 1.2000.
The material has been provided by InstaForex Company – www.instaforex.com
The market remained indifferent to the UK inflation, which remained at 6.7%. However, pound eventually weakened noticeably, even though the stability of inflation at a high level indicates the inevitability of further tightening of the Bank of England’s monetary policy, which should contribute to the strengthening of pound.
As for dollar, it rose globally due to the absence of any macroeconomic data or other news that could influence market sentiment. Although at the time of the movement, inflation data for the eurozone came out, it had no relevance to the matter because the final data only confirmed the fact that the growth of consumer prices had slowed from 5.2% to 4.3%.
However, the market already took into account the preliminary estimates a couple of weeks ago, so the recent movement may just be speculation. Nevertheless, dollar climbed up, and the jobless claims data scheduled to be published in the US today will not affect the situation, especially since the total number may increase by only 8,000. Dollar may either continue to rise, or start to return to the levels it traded at before yesterday’s increase.
EUR/USD bounced off the resistance level of 1.0600, resulting in an increase in short positions. This resumed the downward trend, which, if continues, may push the pair down below 1.0500 level.
GBP/USD completed the sideways movement and prolonged its downward trend. This led to an increase in short positions, which, if continues, may push the pair down to the psychological level of 1.2000.
The material has been provided by InstaForex Company – www.instaforex.com
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