- Published: 16 August 2017
- Written by Editor
The risk appetite could find its way back to the investors as the worries abated about the conflict between North Korea and US.
The gold lost momentum trading now close to $1275$ and UST yields rose again making USD much more attractive with increasing demand for risky assets drove the US blue chips up again.
The Japanese yen came under pressure as a low yielding funding currency sending USDJPY to be trading close to 110.50, after steep falling to 108.73 last week amid the tensions between US and North Korea, following Trump's "Fire and Fury" comment.
The inflation data of Jul came out from UK today telling about weaker than expected inflationary pressure over the producing level and also the consuming level lowering the odds of watching tightening of BOE's monetary policy this year.
UK CPI rose by 2.6% YOY in July as the same it did in June, While the consensus was referring to increasing by 2.7% and also the core figure excluding food and energy rose by 2.4% yearly as the same as June, while the median forecast was pointing to rising by 2.5%.
While UK input n.s.a price index rose yearly in July by only 6.5% and the anticipation was referring to increasing by 7% which is the weakest yearly rising since July of last year and also the sixth consecutive month of watching deceleration of this pace reflecting the impact of the cable recent appreciation toward 1.30 psychological level.
GBPUSD retreated to be trading now close to 1.29 which has not been seen since 13th of last month.
The markets will be waiting next for the release of US retails sales figures of July to know more about the consuming spending in US.
July US Retails sales are expected to rise by 0.4% monthly after shocking retreating in June by 0.2%.
GBPUSD is now trading below its daily SMA50, but it's still supported over longer term by keeping existence above its daily SMA100 and its daily SMA200.
GBPUSD is now in its day number 8 of continued being below its daily Parabolic SAR (step 0.02, maximum 0.2) which is reading today 1.3149, after forming a top at 1.3265 on Aug. 3.
GBPUSD daily RSI-14 is now referring to lower existence inside the neutral region reading 41.338.
GBPUSD daily Stochastic Oscillator (5, 3, 3) which is more sensitive to the volatility is having now its main line at 26.672 in intersection with its signal line which is reading 25.178.
Important levels: Daily SMA50 @ 1.1283, Daily SMA100 @ 1.1017 and Daily SMA200 @ 1.0849
S&R:
S1: 1.3031
S2: 1.3265
S3: 1.3444
R1: 1.2589
R2: 1.2365
R3: 1.2226
Have a good day
Kind Regards
Global Market Strategist
Walid Salah El Din
Mob: +20 12 2465 9143
E-Mail: This email address is being protected from spambots. You need JavaScript enabled to view it.
