UK In the Spotlight For Forex Traders

Coming Up This Week

• Tuesday-UK CPI
• Wednesday-UK MPC Minutes
• Wednesday-US CPI

The Olympics is over but Forex traders will continue to put their focus on England. This week we will see a slate of important economic events from the UK, starting with tomorrow’s CPI figures and then moving on to Wednesday’s Claimant Change and MPC Minutes data. All of this news occurs after last week’s Bank of England Inflation Report, where the central bank cut its 2012 growth forecast to 0.0%. The lack of much economic movement in the UK has affected trading in the GBPUSD which continues to be in a long term trading range without much follow through momentum. Charts to Watch EURUSD: Fell below 1.2300 last week, but still hanging around that level. The appearance of demand, just below 1.2300, seems to indicate that Forex traders aren’t sure of just what the next move for the Euro is. As such, any positive news for the EURUSD could trigger a spike back above 1.2400, while a negative event could lead to another retest of 1.2100 

. Gold : We noted in the past that prices of Gold have been seeing buying interest at 1580. The chart shows that demand for Gold since its May lows have been steadily increasing. As such, with technical’s showing bullish signals, and fundamentals of possible inflation due to global central bank stimulus, Gold could be an upside breakout candidate. For this to happen, we will need to see the metal trade and hold above 1635.