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Traders Expectations Ahead of Key U.S. CPI Data-TraderFactor

Traders Expectations Ahead of Key U.S. CPI Data

As traders across the globe monitor market movements, the Forex arena remains particularly dynamic amid a plethora of economic data releases set to sway the valuations of major currency pairs. From the EUR/USD’s range-bound dance beneath the 1.0800 mark to the ongoing saga of GBP/USD and AUD/USD shedding pounds and pennies, it’s clear that the currency markets are anything but static.

Today’s trading session is brimming with anticipation, as eyes turn towards the forthcoming German ZEW Economic Sentiment figures, Britain’s Claimant Count Change and the all-important US Consumer Price Index (CPI) numbers that promise to shake up the otherwise steady march of currency values.

EUR/USD Analysis: Capped by 1.0800 with CPI in Focus

Today’s European session sees the Euro under pressure, losing 20-30 pips against the US Dollar. The current intraday recommendation is to sell, with an entry price set at 1.0785. Traders are advised to target and take profit levels at 1.0750 and 1.0740 respectively. It’s worth noting that this trading strategy carries a risk of 2% per trade, making it a significant consideration in the spot market. The Relative Strength Index (RSI), a key technical indicator, also shows downside momentum, suggesting a potential bearish trend for the EUR/USD pair.

EUR/USD Intraday

GBP/USD: Modest Lift Faces Economic Data Test

Metro across the channel, the British Pound climbs cautiously against the Dollar, eyeing the 1.2650 in the European morning. The latest economic dispatch from the UK enumerates unemployment dipping to 3.8% in December, while wage inflation decelerates from 6.7% to 6.2%.

Despite this ostensibly positive news which normally might bolster the Pound, wage inflation remaining robust enough means the Bank of England might be loath to cut rates ahead of schedule.

Trade Recommendations for GBP/USD

In the current trading session, the British Pound is experiencing downward pressure against the US Dollar, dropping by 25-35 pips. The intraday recommendation for GBP/USD is a sell, with a pivot entry price set at 1.2640. The suggested target and profit-taking levels are 1.2595 and 1.2580 respectively. This approach carries a risk of 2% per trade, making it a notable factor in the spot market for today. The Relative Strength Index (RSI), a key technical indicator, is currently showing a lack of upward momentum, indicating a potential bearish trend for the GBP/USD pair.

GBPUSD Daily Chart

GBP/USD Intraday

AUD/USD: Diminishing on Aussie Reserve Cautions

The Australian Dollar retreats from its prior gains, regardless of improved consumer confidence statistics pointing to a surge from 81 to an impressive 86 in February. Challenges lie ahead as inflation moderation suggests the Reserve Bank of Australia may halt its monetary tightening, putting downward pressure on the AUD/USD.

Trade Recommendations for AUD/USD

The Australian Dollar is facing downward pressure against the US Dollar in today’s trading session, with a decrease of 20-35 pips. The intraday recommendation for AUD/USD is to sell, with an entry price at the pivot point of 0.6540. Traders are advised to set their target and take profit levels at 0.6500 and 0.6485, respectively. This trading strategy carries a risk level of 2% per trade, which is crucial to consider in the spot market. The Relative Strength Index (RSI) is currently indicating downside momentum, suggesting a potential bearish trend for the AUD/USD pair.

AUDUSD Daily Chart

AUD/USD Intraday

USD/JPY: Steady Ascent In Anticipation Of Policy Shifts

Finally, the USD/JPY sees an uptrend, shadowing the 149.50 level. Lingering anxieties over rate hikes resurface in light of the Bank of Japan’s policy stance shift, though Deputy Governor Shinichi Uchida’s comments imply a gradualist approach, potentially offering the Yen cover under its safe-haven mantle due to escalating tensions in the Middle East.

Trade Recommendations for USD/JPY

The USD/JPY pair is experiencing an upward trend, gaining between 20 to 40 pips. The intraday recommendation for USD/JPY is a buy, with an entry price at the pivot point of 149.20. Target and take profit levels are advised at 149.75 and 150.00 respectively. This trading strategy involves a risk of 2% per trade, an important factor to be considered in the spot market. According to the Relative Strength Index (RSI), the outlook is mixed to bullish, indicating a potential uptrend for the USD/JPY pair.

USDJPY Daily Chart

USDJPY Daily Chart

WTI Crude Oil: Surging Amid Geopolitical Strife

In energy news, West Texas Intermediate (WTI) oil prices press on towards $77.00 per barrel, fueled by the escalating tensions in the Middle East, garnering further attention amidst tumultuous commodity market shifts.

WTI Crude Oil Prices

Disclaimer:

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Author

  • Zahari Rangelov

    Zahari Rangelov is an experienced professional Forex trader and trading mentor with knowledge in technical and fundamental analysis, medium-term trading strategies, risk management and diversification. He has been involved in the foreign exchange markets since 2005, when he opened his first live account in 2007. Currently, Zahari is the Head of Sales & Business Development at TraderFactor's London branch. He provides lectures during webinars and seminars for traders on topics such as; Psychology of market participants’ moods, Investments & speculation with different financial instruments and Automated Expert Advisors & signal providers. Zahari’s success lies in his application of research-backed techniques and practices that have helped him become a successful forex trader, a mentor to many traders, and a respected authority figure within the trading community.