The Pound continues to be choppy. After attaining short term highs early this morning, the Pound has reversed. U.S inflation data today, via the Consumer Price Index will be a springboard for volatility in forex and equities if there are major surprises.
All aboard the Pound Roller Coaster
All aboard the Pound roller coaster ladies and gentlemen. The British currency, along with the other major currencies, has proven forex is not for the timid the past ten days.The Pound is near 1.3870 as of this report, and will remain choppy as traders anticipate and then act on the U.S Consumer Price Index data due in a short time. The inflation data could be a springboard for tumultuous broad markets if the result is not in line with expectations.
U.S Inflation Data as a Springboard for Pound
The Pound hardly reacted to inflation data from the U.K yesterday, which was fractionally higher than expected. But the Pound did gain on Tuesday in the wake of weaker U.S Dollar sentiment. Resistance looks to be 1.40, and support looks like it could be 1.37 for the Pound near term.However market conditions remain choppy in forex and equities this morning, and traders should be prepared for additional rough sailing over the next twenty-four hours and have their risk management in place.
In the short term we believe the Pound may be negative. Mid-term and Long term we are unbiased.