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GPB/USD forex signal - U.S. Producer Prices Index - 10 Apr 2018

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Signal Details
Entry Price: 
1.4150
Take Profit: 
1.4100
Stop Loss: 
1.4173
Direction: 
Sell
Result: 
Loss
How we trade
5/5 of 4 ratings

The producer prices index data will be released today at 12:30 GMT. According to the economists polled, producer prices are forecast to rise 0.1% on the month in March. This marks a slower increase in producer prices after the data from February showed an increase of 0.2%.

The core PPI which excludes the volatile food and energy prices is forecast to rise 0.2% on the month. This marks the same pace of increase as seen in the previous month.

On an annual basis, headline producer prices are forecast to rise 2.9%, accelerating slightly from 2.8% that was registered in the previous month on the year. Core PPI is expected to rise 2.6%, again rising slightly from 2.5% that was registered in the previous month.

The PPI data is seen as a key component as it could potentially forecast higher inflation on the consumer side in the near term. The PPI data comes just a day before the monthly consumer price index data. Although the report is unlikely to impact the markets much it could no doubt fuel speculation on the pace of increase in consumer prices in the United States.

Based on the above, today's forex trading signal is GBPUSD. The currency pair was seen posting some strong gains yesterday led by a weaker U.S. dollar. Price action briefly tested the upper resistance at 1.4162 before easing back.

We expect to see a near term correction as a result. Therefore, we are looking to short GDPUSD at 1.4150 with stops at 1.4173 targeting 1.4100. We expect the near term price action to potentially pullback to the lower support and close lower on the day.

forex signal gbpusd 10 apr 2018

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.