DailyFX.com -

Talking Points:

- EUR/USD Comes Up Against Key 1.3450-60 Zone; Lower-Low in Place?

- GBP/USD to Face Larger Correction on Unanimous BoE Vote

- USDOLLAR Falls Back From Fresh Monthly High as U.S. Core Inflation Slows

Index

Last

High

Low

Daily Change (%)

Daily Range (% of ATR)

DJ-FXCM Dollar Index

10451.68

10455.43

10431.47

0.12

91.85%

EUR/USD:

  • Slips to a fresh yearly low of 1.3457; outlooks remains bearish as the EUR/USD continues to carve lower highs & lows while Relative Strength Index (RSI) retains downward trend.
  • Despite the lack of fundamental event risk coming out of the euro-area, looks as though market players continue to favor selling the EUR/USD despite the weak data prints out of the U.S.
  • DailyFX Speculative Sentiment Index (SSI) stands at 1.6233 after flipping into positive territory .

GBP/USD:

  • Looks poised to hold above the 1.7020-30 region as it continues to trade above the July low (1.7035).
  • Bank of England (BoE) Minutes to heavily influence near-term outlook for GBP/USD as market participants look for a growing dissent within the Monetary Policy Committee (MPC).
  • BoE may continue to favor a stronger British Pound as it helps to achieve price stability.

For more updates, sign up for David's e-mail distribution list.

GBP/USD Range in Focus Ahead of BoE; Has EUR/USD Made a Lower-Low?

Join DailyFX on Demand for Real-Time SSI Updates Across the Majors!

Read More:

Price & Time: Key Test for the Euro

Managing USD Expectations with EUR/USD, USD/CAD (but not USD/JPY)

USDOLLAR Daily

GBP/USD Range in Focus Ahead of BoE; Has EUR/USD Made a Lower-Low?

Chart - Created Using FXCM Marketscope 2.0

USDOLLAR(Ticker: USDollar):

  • Dow Jones-FXCM U.S. Dollar Index advances to a fresh monthly high despite the unexpected downtick in the core rate of inflation.
  • Looks as though Fed will retain a dovish tone for monetary policy as the stickiness in the headline reading for inflation was largely driven by higher energy costs.
  • Nevertheless, close above 10,440 (78.6% Fibonacci retracement) should bring up 10,470 next.
  • Interim Resistance: 10,508 (61.8% retracement) to 10,524 (38.2% retracement)
  • Interim Support: 10,354 (Oct. low) to 10,375 (50.0& retracement)

Release

GMT

Expected

Actual

Consumer Price Index (MoM) (JUN)

12:30

0.3%

0.3%

Consumer Price Index (YoY) (JUN)

12:30

2.1%

2.1%

Consumer Price Index ex Food & Energy (MoM) (JUN)

12:30

0.2%

0.1%

Consumer Price Index ex Food & Energy (YoY) (JUN)

12:30

2.0%

1.9%

Consumer Price Index Core Index s.a. (JUN)

12:30

238.227

238.083

Consumer Price Index n.s.a. (JUN)

12:30

238.535

238.343

House Price Index (MoM) (MAY)

13:00

0.2%

0.4%

Richmond Fed Manufacturing Index (JUL)

14:00

5

7

Existing Home Sales (JUN)

14:00

4.99M

5.04M

Existing Home Sales (MoM) (JUN)

14:00

1.9%

2.6%

Click Here for the DailyFX Calendar

--- Written by David Song, Currency Analyst

To contact David, e-mail dsong@dailyfx.com. Follow me on Twitter at @DavidJSong.

To be added to David's e-mail distribution list, please follow this link.

Trade Alongsidethe DailyFX Team on DailyFX on Demand

Looking to use the DailyFX Trade Signals LIVE? Check out Mirror Trader.

New to FX? Watch this Video

Join us to discuss the outlook for the major currencies on the DailyFXForums


original source