Focus inflation in UK and USA

U.S. dollar held steady 4-month high against euro on Tuesday. Investor may focus U.S. inflation through PPI at 19.30 p.m. on Wednesday, core CPI and CPI at 19.30 p.m. on Thursday. In my opinion, if these indices are higher than forecast, it may support U.S. dollar rise up because investor may worry about Fed rise interest rate next month. While British pound also awaits Bank of England inflation report and interest rate decision at 18.00 p.m. on Thursday. In my opinion the recent inflation in U.K. is 2.5% and BoE may keep interest rate at 0.50% so pound may fall to 1.3500 dollar, if U.S. economic data will be good.
Kiwi dollar may hold steady 0.700 U.S. dollar awaits RBNZ interest rate decision and rate statement at 04.00 a.m. RBNZ maybe unchanged the interest rate at 1.75% and it may support Kiwi dollar for short term. While Brent oil may raise, if U.S. crude oil inventories at 21.30 p.m. decrease lower than 1.167 million barrels.

By Niramon Nitnitiphruet
Financial analyst, Olymp Trade.

Olymp Trade Review