{"id":6866,"date":"2010-02-16T12:27:48","date_gmt":"2010-02-16T17:27:48","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=6866"},"modified":"2010-02-16T12:27:48","modified_gmt":"2010-02-16T17:27:48","slug":"gbpusd-weakens-following-uk-cpi-data","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2010\/02\/16\/gbpusd-weakens-following-uk-cpi-data\/","title":{"rendered":"GBP\/USD Weakens Following UK CPI Data"},"content":{"rendered":"

By Fast Brokers <\/strong>– Although UK CPI surged this month, both the headline and core printed one basis point below analyst expectations.\u00a0 Furthermore, King played down the significance of the rise in consumer prices once again as a temporary flare.\u00a0 Additionally, King reiterated the BoE\u2019s ability to reinstate QE measures should inflation drop back below 2%.\u00a0 Hence, Mervyn King is batting away any excitement which could be generated from the rise in UK consumer prices.\u00a0 In fact, King\u2019s steadfast denial of excessive inflation is a bit disconcerting for the Pound since the BoE could be inclined to keep its monetary policy loose for a while should the recent upward pressure on prices prove temporary.\u00a0 Elsewhere in Europe finance ministers announced they are giving Greece 30 days to prove it can commit to its austerity plans.\u00a0 Hence, the EU has effectively punted and may want to give the markets another month to settle before deciding whether to take more action.\u00a0 Meanwhile, investors are awaiting the U.S. Empire Index and TIC Long-Term Purchases data.\u00a0 It will be interesting to see how the data impacts the Dollar, particularly if it prints positively.\u00a0 Negative U.S. data could lead investors to favor the Pound over the Dollar, although it may also send investors towards the Dollar for safety.\u00a0 Hence, behavior of the Greenback is still a bit unpredictable as investors weigh economic uncertainty in the EU and tightening in China.\u00a0 The UK will release Claimant Count Change data tomorrow along with the BoE\u2019s monetary policy minutes.\u00a0 The CCC number gives the Cable an opportunity to build some upward momentum should the data impress.\u00a0 However, weak employment data could weigh on the Cable as investors question the ability of inflation to hold above the BoE\u2019s 2% target.<\/p>\n

Technically speaking, the Cable has multiple downtrend lines serving as technical barriers along with intraday and 2\/10 highs.\u00a0 As for the downside, the Cable has multiple uptrend liens serving as technical cushions along with 2\/11 and 2\/8 lows.\u00a0 Furthermore, the psychological 1.55 level could serve as a sturdy technical cushion should it be tested.<\/p>\n

Present Price: 1.5665<\/p>\n

Resistances: 1.5700, 1.5717, 1.5731, 1.5747, 1.5763, 1.5783<\/p>\n

Supports: 1.5662, 1.5640, 1.5621, 1.5609, 1.5583, 1.5557, 1.5533<\/p>\n

Psychological: 1.55<\/p>\n

(click chart to enlarge)<\/p>\n

\"\"<\/a><\/p>\n

Market Commentary<\/strong><\/em> provided by Fast Brokers<\/strong>.<\/a><\/p>\n

Disclaimer:<\/strong> FastBrokers\u2019 market commentary is provided for information purposes only and under no circumstances should be regardedneither as an investment advice nor as a solicitation or an offer to sell\/buy any financial product. FastBrokers assumes no responsibility or liability from gains or losses incurred by the information herein contained.<\/p>\n

Risk Disclosure:<\/strong> There is a substantial risk of loss in trading futures and foreign exchange. Please carefully review all risk disclosure documents before opening an account as these financial instruments are not appropriate for all investors.<\/p>\n","protected":false},"excerpt":{"rendered":"

By Fast Brokers – Although UK CPI surged this month, both the headline and core printed one basis point below analyst expectations.\u00a0 Furthermore, King played down the significance of the rise in consumer prices once again as a temporary flare.\u00a0 Additionally, King reiterated the BoE\u2019s ability to reinstate QE measures should inflation drop back below … <\/p>\n

Continue reading “GBP\/USD Weakens Following UK CPI Data”<\/span><\/a><\/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-6866","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/6866","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=6866"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/6866\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=6866"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=6866"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=6866"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}