GBP / USD, EUR / USD, Hang Seng Index, US CPI – Talking Points
- The US dollar strengthened today as stock markets were turbulent
- The inflation debate will heat up again after Friday‘s USA PPI
- The US CPI can provide guidance on narrowing timing. Will USD do anything
Great British pound, Euro and New Zealand Dollar were all more lenient against the US dollar through Asian trade today, in a mixed session. The Chinese Communist Party continuesd to implement of this common welfare policy, Alibaba under the microscope. Hong Kong’s Hang Seng index was therefore significantly lower, as well as MayNorth China indices.
Friday‘s The US PPI figure was slightly higher than expected in August, 0.7%, compared to the 0.6% forecast. This has re-launched the inflation debate, with several G10 CPI figures due this week.
Paul Krugman wrote in The New York Times over the weekend that he believes inflation is similar this time around the 1951 style of inflation, not the 1979 version. Theme sees high price increase prints are currently temporary. The market seems to think toowith the US benchmark for 10-year inflation confirmed Treasury Inflation-Protected Securities (TIPS) pricing at 2.39%.
Aluminum continued its meteoric rise after last week “s coupt Guinea. Country is the world’s largest manufacturer bauxite, which is an aluminum base. Crude oil was also higher during the day, concerns about the pace of production recovery after Hurricane East.
Looking ahead, markets are closely monitoring the US consumer price index after a number of European consumer price index numbers.
GBP / USD – technical analysis
The British pound continues to trade in a narrowing range against the US dollar with a currency pair that lacks any momentum in either direction. This trading environment may persist for some time.
If you look at past peaks and troughs, you would need to change the pattern GBP / USD trade above 1.3982 or below 1.3572. Within these parameters, 1.3602 may provide support and 1.3892 may provide resistance. Moving below the 21-day simple moving average of 1.3767 may give some impetus to testing the lower end of the range.
– Written by Daniel McCarthy, Strategist at DailyFX.com
Use the or comments section below to contact Daniel @DanMcCathyFX Twitter