The British pound came under pressure across the broad after the release of UK retails sales which were expected to ease monthly to .4% from .9% in April and yearly to -.1% from 2.6% in April but they have fallen by .6% monthly and 1.6% yearly. The cable lost about 2.5 figures reaching 1.6209 again after the data. The cable has found support at this level several times and if this weak consuming data could contain the market sentiment, this can lead to a breaking of it which can expose to 1.60 psychological level to be tested as a support. The British pound was supported this week by the release May UK CPI which has increased by 2.2% y/y while the market was waiting for just 1.9% and the monthly figure came up to .6% from .2% in April while the market was waiting for .3% showing inflation creeping up in May.

The gold eased this week with the easing of commodities and energy prices amid a correction in the equities market. 960 level has formed a resistance in the face of the gold after closing below it for the second week which put further technical pressure lead to further declining below 942.8$ reaching 925.88$ earlier this week and its trying to get above 940$ resistance has been capped yesterday by May US CPI Index declining by 1.3% y/y broadly and the core figure excluding the food and energy decreasing to 1.8% y/y could cap it yesterday as the market was waiting for a slide by just .9% after April slide by .7% broadly and was waiting for the core to be as the same as April at 1.9%. The data shows that the inflation pressure is still tamed negatively impacted by the recessionary pressure unfazed with the recent increases of the energy and commodities prices.

 By God's Will, we wait later today for the US weekly jobless claims which are expected to be 600k and weekly continued jobless claim which are expected to be 6.85m and also we have May us leading indicators index which is expected to be up monthly by .9% and the market can focus on Philadelphia manufacturing Fed business survey of June which waited to be -16.6 from -22.6 after the shock of NY Fed manufacturing survey of June falling to -9.41 from -2.12 which encourage the investors to take profits from the stocks market in the beginning of this week.

Best wishes

FX Consultant

Walid Salah El Din
E-Mail: This email address is being protected from spambots. You need JavaScript enabled to view it.
http://www.fx-recommends.com