Yesterday data on UK Inflation was released. It accelerated to the fastest pace in 9 months in February. PPI Input was 3.2% against 1.3% in January and forecast for 1.7%, PPI Output was 0.8% vs. 0.2%. Core Consumer Price Index was 2.3% against forecast for 2.2%. Retail Price Index dropped from 3.3% to 3.2% and house prices fell 2.2% vs. 3.3%. On the whole, the inflation quickened and the investors do not wait for the modifications in monetary policy. Today at 13:30 GMT+4 release of Bank of England meeting Minutes is scheduled. Meanwhile, data on ILO Unemployment Rate is published; it is expected to be flat 7.8%.
Today at 16:30 GMT+4 in the UK, Chancellor of the Exchequer George Osborne delivers his annual budget. The country needs extra 10 billion pounds. The draft is intended to provide the solution to this issue. It is expected the process of deficit narrowing will be extended and it will support the pound.
From the technical point of view, yesterday the price did not manage to consolidate above the downward Fibonacci level and this task is moved for today but it will be more complicated. In order to continue growing the price has to consolidate above 200%, the level of Fibonacci, 1.5134. In this case the first target 1.5198, the low of March 5, opens, then the area of Fibonacci levels on the H4 261.8% – 271% (1.5230-1.5244), the third target is resistance of Fibonacci extension 1.5289-1.5310. If the level of 1.5068 is broken, the downward movement to 1.5000 is possible and further to 1.4924. On the H4 the wedge was built and we expect the rate leaves this region today.
The material has been provided by InstaForex Company – www.instaforex.com
Yesterday data on UK Inflation was released. It accelerated to the fastest pace in 9 months in February. PPI Input was 3.2% against 1.3% in January and forecast for 1.7%, PPI Output was 0.8% vs. 0.2%. Core Consumer Price Index was 2.3% against forecast for 2.2%. Retail Price Index dropped from 3.3% to 3.2% and house prices fell 2.2% vs. 3.3%. On the whole, the inflation quickened and the investors do not wait for the modifications in monetary policy. Today at 13:30 GMT+4 release of Bank of England meeting Minutes is scheduled. Meanwhile, data on ILO Unemployment Rate is published; it is expected to be flat 7.8%.
Today at 16:30 GMT+4 in the UK, Chancellor of the Exchequer George Osborne delivers his annual budget. The country needs extra 10 billion pounds. The draft is intended to provide the solution to this issue. It is expected the process of deficit narrowing will be extended and it will support the pound.
From the technical point of view, yesterday the price did not manage to consolidate above the downward Fibonacci level and this task is moved for today but it will be more complicated. In order to continue growing the price has to consolidate above 200%, the level of Fibonacci, 1.5134. In this case the first target 1.5198, the low of March 5, opens, then the area of Fibonacci levels on the H4 261.8% – 271% (1.5230-1.5244), the third target is resistance of Fibonacci extension 1.5289-1.5310. If the level of 1.5068 is broken, the downward movement to 1.5000 is possible and further to 1.4924. On the H4 the wedge was built and we expect the rate leaves this region today.
The material has been provided by InstaForex Company – www.instaforex.com