Chapter 25 GBPUSD Going up
Summary
It's all about inflation in the USA CPI drives the market movement
Fundamental Analysis
This morning’s US PPI report was this week’s opening salvo on the inflation front. The figure came in well beneath expectations, reinforcing last Thursday’s downtick in US CPI. If nothing else, the Fed can confidently say that its inflation-fighting tools are effective.
In case you missed it, here’s a brief look at this US PPI data:
Core PPI (MoM, Oct): 0.0% actual, 0.3% expected
Core PPI (YoY, Oct): 6.7% actual, 7.2% expected
PPI (MoM, Oct): 0.2% actual, 0.4% expected
PPI (YoY, Oct): 8.0% actual, 8.3% expected
On the other hand market, today took the news of the GBP as a piece of positive news even though the news was not that good for the GBP the market reaction take it as a positive and push the GBP up against the USD
In case you missed it, here’s a brief look at this GBP data:
The unemployment rate 3.6% actual, 3.5% expected
Average earning 6% actual, 6.1% expected
Claimant Count Change 3.3k actual, 3.9k expected
Employment change -52k actual, -109k expected
Technical analysis
From the technical point of view we see the market taking the uptrend we will wait for the pullback to join the breakout zone and then we expect the market to continue the uptrend again
With 20 SMA pointing up as is shown in the diagram chart
