Market Analysis: UK inflation and the Fed rate decision puts the GBP/USD in focus this Wednesday

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  • 21.03.2019
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<p><a href=””><img style=”width:auto;” class=”img-responsive” src=”” style=”” alt=”GBP/USD economic events calendar” rel=””></a></p><p><em>Source: Economic Events March 20, 2019 – </em><a href=””><em>Admiral Markets’ Forex Calendar</em></a></p>
<p>Today could possibly be a big day for the GBP/USD, and we may see a break above 1.3400. This upward trend began last Monday, when House of Commons Speaker John Bercow blocked another planned Brexit vote of UK prime minister Theresa May, saying that the deal needs to be “fundamentally different” for another such vote. </p><p>That said, today’s main economic events for GBP/USD will be the release of the inflation rate data at 9:30am GMT, and the FED rate decision at 6pm GMT. </p><p>Yesterday, we learned that UK unemployment rate fell to a 44-year low, at 3.9%, while the total number of unemployed fell by 35K with employment increasing by 222K, the biggest three-month rise since November 2015. Some market participants may see a small chance for an upbeat in inflation today back towards 2%. </p><p>If we get to see such a reading, combined with a dovish Fed stance in the evening, a significant push towards and above 1.3400 is very likely – and would activate the region around 1.3600/3650 as a target on the upside in the coming few days. </p><p>In general, the GBP/USD picture remains bullish in the short-term as long as the currency pair trades above 1.2950: </p><p><a href=””><img style=”width:auto;” class=”img-responsive” src=”” style=”” alt=”GBP/USD daily chart” rel=””></a></p><p><em>Source: Admiral Markets </em><a href=”″><em>MT5</em></a><em> with </em><a href=””><em>MT5-SE Add-on</em></a><em> GBP/USD Daily chart (between December 18, 2018, to March 19, 2019). Accessed: March 19, 2019, at 10:00pm GMT – Please note: Past performance is not a reliable indicator of future results, or future performance.</em></p><p>In 2014, the value of the GBP/USD fell by 5.9%, in 2015, it fell by 5.4%, in 2016, it fell by 16.3%, in 2017, it increased by 7.4%, in 2018, it fell by 5.6%, meaning that after five years, it was down by 22.9%.</p><p><a href=”″><a href=””><img style=”width:auto;” class=”img-responsive” src=”” style=”” alt=”Download MetaTrader 5 and begin trading today!” rel=””></a></a></p><p><em>Disclaimer: The given data provides additional information regarding all analysis, estimates, prognosis, forecasts or other similar assessments or information (hereinafter “Analysis”) published on the website of Admiral Markets. Before making any investment decisions please pay close attention to the following:</em></p><ol><li>This is a marketing communication. The analysis is published for informative purposes only and are in no way to be construed as investment advice or recommendation. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and that it is not subject to any prohibition on dealing ahead of the dissemination of investment research.</li><li>Any investment decision is made by each client alone whereas Admiral Markets shall not be responsible for any loss or damage arising from any such decision, whether or not based on the Analysis.</li><li>Each of the Analysis is prepared by an independent analyst (Jens Klatt, Professional Trader and Analyst, hereinafter “Author”) based on the Author’s personal estimations. </li><li>To ensure that the interests of the clients would be protected and objectivity of the Analysis would not be damaged Admiral Markets has established relevant internal procedures for prevention and management of conflicts of interest.</li><li>Whilst every reasonable effort is taken to ensure that all sources of the Analysis are reliable and that all information is presented, as much as possible, in an understandable, timely, precise and complete manner, Admiral Markets does not guarantee the accuracy or completeness of any information contained within the Analysis. The presented figures refer that refer to any past performance is not a reliable indicator of future results.</li><li>The contents of the Analysis should not be construed as an express or implied promise, guarantee or implication by Admiral Markets that the client shall profit from the strategies therein or that losses in connection therewith may or shall be limited.</li><li>Any kind of previous or modeled performance of financial instruments indicated within the Publication should not be construed as an express or implied promise, guarantee or implication by Admiral Markets for any future performance. The value of the financial instrument may both increase and decrease and the preservation of the asset value is not guaranteed.</li><li>The projections included in the Analysis may be subject to additional fees, taxes or other charges, depending on the subject of the Publication. The price list applicable to the services provided by Admiral Markets is publicly available from the website of Admiral Markets.</li></ol><em>Leveraged products (including contracts for difference) are speculative in nature and may result in losses or profit. Before you start trading, you should make sure that you understand all the </em><a href=””><em>risks</em></a><em>.</em>