The Bank of England held interest rates on Thursday and said weak growth during a snowy start to 2018 was likely to be only temporary, but it wanted to see a pick-up in the economy in the next few months before raising borrowing costs. In our opinion a rate hike in August is likely.
U. S. Labor Department said its Consumer Price Index rose 0.2% after slipping 0.1% in March. Excluding the volatile food and energy components, the CPI edged up 0.1% after two straight monthly increases of 0.2%. The market had forecast the CPI rebounding 0.3% in April and the core CPI climbing 0.2%.
This is how MyFXspot.com trades today:
EUR/USD
Trading strategy: Long
Open: 1.1905
Target: 1.2150
Stop-loss: 1.1795
Recommended size: 1.82 mini lots per $10,000 in your account
Short analysis: EUR/USD trend is reversing after u.s. CPI data. EUR/USD bears failed to reach the target at 1.1790 Fibonacci level, 76.4% retrace of the 1.1555 to 1.2555 (November to February) rise. We opened long at 1.1905 for 1.2150.
GBP/USD
Trading strategy: Long
Open: 1.3530
Target: 1.3850
Stop-loss: 1.3390
Recommended size: 1.43 mini lots per $10,000 in your account
Short analysis: Bearish momentum is fading as price consolidates around the 200-day MA pivot. A series of doji candles highlight market indecision. Wednesday's doji plus bullish confirmation today would open up a larger pullout of the underlying bear trend. The reaction today's BoE decision was muted, which also suggests that bearish move is coming to an end. We opened long at 1.3530.
USD/JPY
Trading strategy: Short
Open: 109.25
Target: 110.35
Stop-loss: 107.00
Recommended size: 1.49 mini lots per $10,000 in your account
Short analysis: USD/JPY bulls remain focused on the recent 110.05 peak, a break above which will unmask the key 200-day SMA at 110.19 and the important 110.24 Fibonacci level, 61.8% retrace of the 113.75 to 104.56 fall. Fourteen-day momentum remains positive, reinforcing the upside bias. On the other hand, another failure to break above the 110.05 level could be a sign of trend reversal and we think the second scenario is more likely now.
