Hot Topics:
- GBP – Waiting for more falls in the Cable.
- USOIL – Crude Oil is waiting for the issuance of the monthly report of the IEA.
- DOLLAR – Observing a possible corrective movement.
Main currencies daily performance.
GBP – Waiting for more falls in the cable.
In a week full of inflation data, we started with the inflation of the United Kingdom. For the month of January, we expect a slight reduction in the CPI from 3.1% to 3.0% (YoY). The level of consensus is above the Bank of England’s (BoE) 2% objective, which at its last meeting of the Monetary Policy Committee, expects a slight downward turn, stabilised at the level projected in the coming months, around 3% in the short term.
Technically, we can see that the Cable is in the middle of a bearish structure that could take us to levels of 1.355 to 1.3448. The invalidation level of this bearish formation is 1.406.
GBP-USD 4-hour Chart ( Click image to enlarge)
USOIL – Crude Oil is waiting for the issuance of the monthly report of the IEA.
Yesterday, the monthly report of OPEC was released, where it expects the global demand of Crude Oil to grow to 98.60 mb/d (million barrels/day) in 2018, compared to the demand registered during 2017 that reached 97.01 mb/d. As for the world supply, OPEC estimates that during 2018 it will reach an average of 59.26 mb/d in non-OECD countries and 57.86 in the case of the OECD countries.
As you can see in the chart, we expect the price to reach $57 to start forming a reversal pattern that can take us to the medium-long term target area of $70.
OIL WTI 4-hour Chart ( Click image to enlarge)
DOLLAR – Observing a possible corrective movement.
The Dollar Index <DOLLAR> has developed two bullish impulse movements. From the current zone, we are expecting it to make a slight bearish move to complete a higher grade bullish structure that would take us to the first weekly resistance R1 at 90.823. We should not lose the point of view that the bias is bullish.
US Dollar Index 1-hour Chart ( Click image to enlarge)
