EURGBP ; On Friday’s session USD held steady in the European market within a narrow range of trading near a three-week high against a basket of currencies, as investors are focusing on the data to be released from the United States in order to reassess the possibility of the an interest rate hike next month, in addition to the comments given by some Fed officials, the most important reports that will be released today are inflation in consumer prices and retail sales for April.
At 11:55 GMT US Dollar Index traded at 99.55 points, from opening level of 99.52 points, it reached its highest of 99.57points, its lowest of 99.43.
Yesterday the US Dollar Index closed up by less than 0.1% for the fourth straight day of gains, hitting a three-week high of 99.76 points, as USD buying positions continued against most of the major currencies. Recent data released from Washington enhanced the chances of interest rate hike next month, as data showed an unexpected increase in producer prices in April and an unexpected drop in weekly jobless claims.
Later today, investors will await the release of important economic data from the US, especially consumer price and retail sales, which will indicate the status of the world’s largest economy in the second quarter of 2017, these reports and comments by some Fed officials will affect the process of reassessing the potential of raising interest rates the upcoming month.
The Consumer Price Index for April 2017 is scheduled to be released at 12:30 GMT; it’s expected to rise by 0.3% from a 0.3% drop in March, excluding food and fuel it’s expected to rise by 0.2% from a decline of 0.1% previously.
The retail sales data for April 2017 is scheduled to be published, it’s expected to rise by 0.6% in April from a 0.2% drop in March, excluding food and fuel for the same month it’s projected to rise 0.5% from the previous reading of an increase of 0.0%
The preliminary reading of Michigan Consumer Sentiment Index for May will be released later, it’s expected to come in 97.0 the same final reading for April.
EURGBP technical analysis
EURGBP trades at level 0.8478 where price is trading at level of Fibo 38 at the time of resistance level
EURGBP trades above line of MA indicator and each of MACD and Ostocastic Escllitor appear bullish movement
So prices expected to reach 0.8520 on short term.
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