Event to pay attention to today:
15:30 EET. USD – Retail Sales
GBPUSD:
GBP/USD broke a three-day losing streak that took the pair to 1.2600 last week, recovering just over half a percent on Monday to return to the 1.2700 range.
UK services PMI results for December hit an 11-month low. On Tuesday, UK traders will focus on wage and labor data. Quarterly average wages are expected to rise to 5% year-on-year.
Markets await the Federal Reserve’s rate decision on Wednesday. Traders will be closely watching the Fed’s updated summary of economic projections (SEP) and interest rate forecasts from policymakers.
U.S. PMI data for December was mixed, with the services PMI hitting multi-year highs and the manufacturing PMI falling below 50.0, indicating contraction. Retail sales data will be released on Tuesday, but may attract limited market attention ahead of the Fed’s final rate decision this year.
On Wednesday, traders will keep an eye on fresh UK Consumer Price Index (CPI) data, while the rest of the market will await the Bank of England’s (BoE) latest rate decision scheduled for Thursday. The Bank of England is expected to leave the interest rate unchanged.
Trading recommendation: Watching the level of 1.2700, trading mainly with Buy orders
Origin: FreshForex
