FXOpen
Yesterday’s weak U.S. Producer Price Index data increased downward pressure on the dollar, leading to a new upward impulse in pairs like EUR/USD, GBP/USD, and AUD/USD.
However, today during the U.S. session, the core inflation figures for the U.S. are expected. The core Consumer Price Index (CPI) is crucial for the future pricing of currency pairs linked to the dollar. If inflation shows another decline, it could push the Federal Reserve towards a rate cut as early as the September meeting.
GBP/USD
Technical analysis of the GBP/USD pair suggests the potential for price growth towards 1.3000-1.2940 in the coming trading sessions, as a bullish "engulfing" pattern has formed on the daily timeframe. If sellers manage to break the support at 1.2800, the pair could retest the 1.2700-1.2660 range.
Key events for GBP/USD pricing include:
- Today at 09:00 (GMT +3:00): Release of the U.K. Consumer Price Index (CPI) for July.
- Today at 15:30 (GMT +3:00): Release of the U.S. Core Consumer Price Index (CPI) for July.
EUR/USD
Technical analysis of the EUR/USD pair indicates a potential test of the important 1.1000 level, as a strong upward impulse is observed on the daily timeframe following the formation of a "bullish engulfing" pattern on 2nd August.
If this level is broken and the price holds above it, the price may continue to rise towards the 2023 highs of 1.1140-1.1100. In the event of a rebound from the psychological mark of 1.1000, the price could correct towards the 1.0940-1.0900 range.
In addition to U.S. inflation data, the following releases are expected today:
- 09:45 (GMT +3:00): Harmonized Consumer Price Index for France.
- 12:00 (GMT +3:00): Eurozone GDP.
Read analytical EUR/USD price forecasts for 2024 and beyond.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
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