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GBP/USD Forecast 20 July 2016

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GBP/USD Forecast 20 July 2016
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Despite the positive data, the British pound weakened under the influence of the strengthening of the US dollar.

In the UK, CPI rose from 0.3% to 0.5%, against the forecast of 0.4%, the core CPI rose from 1.2% to 1.4%.

However, yesterday, some British newspapers published the information that the Bank of England may raise rates no earlier than 2020.

The US presented the strong data. In June the number of housing starts was 1.19 million against expectations of 1.17 million, and the number of buildings permits increased from 1.14 million to 1.15 million.

Today the UK is to publish data on the labor market. The number of unemployed is expected to rise by 3.5K, the average earnings are expected to grow by 2.3%. The unemployment rate is expected unchanged 5.0%.

How to trade

We would buy put options if the pair GBP/USD falls below 1.3075.

Asset: GBP/USD
Direction: Put
Target price: 1.3075
Expiry time: 20:00 GMT

Disclaimer: The article is written for informative purposes only and it is not financial advice. The author does not have any position in the currency pairs mentioned, and no plans to initiate a position. He wrote the article himself and expressed his own opinions. He has no business nor personal relationships with any mentioned government entities or stocks. Readers should not treat any opinion expressed by the author as a specific inducement to make a particular trade or follow a particular strategy, but only as an expression of his opinion.

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