{"id":21670,"date":"2011-06-14T03:37:15","date_gmt":"2011-06-14T07:37:15","guid":{"rendered":"http:\/\/www.forexyard.com\/blog\/en\/?p=14625"},"modified":"2011-06-14T03:37:15","modified_gmt":"2011-06-14T07:37:15","slug":"uk-and-us-inflation-readings","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2011\/06\/14\/uk-and-us-inflation-readings\/","title":{"rendered":"UK and US Inflation Readings"},"content":{"rendered":"<p><img decoding=\"async\" src=\"http:\/\/www.forexyard.com\/blog\/en\/wp-content\/uploads\/profile-pics\/9.jpg\" width=\"120\"  alt=\"printprofile\" \/><\/p>\n<p>Yesterday\u2019s decline in the value of the USD was sudden and sharp.  The euro and the pound rallied into the New York close and continued their gains early this morning in the Asian session. The moves higher by the European currencies are surprising given the lack of market moving events yesterday.  Traders will now look to economic data from both the UK and the US for market direction.<\/p>\n<p><span id=\"more-14625\"><\/span>Today\u2019s Economic Data Releases:<\/p>\n<p>GBP \u2013 CPI y\/y \u2013 08:30 GMT<br \/>\nExpectations:  4.5%.  Previous:  4.5%.<br \/>\nUK inflationary forces are expected to remain at higher levels as the BoE delays any potential interest rate hike so as not to derail the tepid UK economic recovery. Yesterday BoE MPC member Martin Weale put forward his case for an increase in UK rates citing the BoE has strayed from its inflation mandate. The inflationary numbers may indeed come in higher and support the pound in the short term but the BoE appears firm in its inaction. Cable has resistance at last week\u2019s high at 1.6470 and the May 31st high at 1.6550. Support is located at the rising trend line from the May 2010 low at 1.6190.<\/p>\n<p>USD \u2013 <a href=\"http:\/\/www.forexyard.com\/blog\/en\/2011\/06\/13\/us-investors-await-tomorrow%E2%80%99s-retail-sales-data\/\">Retail Sales<\/a> m\/m \u2013 12:30 GMT<br \/>\nExpectations:  -0.3%.  Previous:  0.5%.<br \/>\nIn keeping with the trend of disappointing US economic data expectations are not high for today\u2019s retail sales report. Traders should also be eyeing the core retail sales report that does not take into account gasoline, autos and building materials. The dollar could continue to decline on further negative US economic pessimism. EUR\/USD resistance looks to be at 1.4550 at the 61% retracement of last week\u2019s declines. Support is found at the overnight lows from Sunday at 1.4320.<\/p>\n<p>USD \u2013 PPI m\/m \u2013 12:30 GMT<br \/>\nExpectations:  0.1%.  Previous:  0.8%.<br \/>\nRegardless of a potential uptick in PPI numbers the Fed\u2019s monetary policy has been well communicated with the market and the Fed is not expected to adjust interest rates higher in the near term. <\/p>\n<p>Read more forex trading news on our <a href=\"http:\/\/www.forexyard.com\/blog\/en\/2011\/06\/13\/weekly-technical-fx-preview\/Read%20more%20forex%20trading%20news%20on%20our%20forex%20blog.\">forex blog<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p> Yesterday\u2019s decline in the value of the USD was sudden and sharp.  The euro and the pound rallied into the New York close and continued their gains early this morning in the Asian session. The moves higher by the European currencies are surprising g&#8230;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-21670","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/21670","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/comments?post=21670"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/21670\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=21670"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=21670"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=21670"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}