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18.08.202210:50 Forex Analysis & Reviews: Trading tips for beginners in EUR/USD and GBP/USD on August 16

The market has been behaving strangely since yesterday. Pound kept on decreasing even though inflation in the UK accelerated from 9.4% to 10.1%. The figure indicates a possible increase in the rates of the Bank of England, which should be bullish for pound.

Inflation (UK):

Exchange Rates 18.08.2022 analysis

Euro, meanwhile, seems to be marking time in spite of the second estimate of the Eurozone's GDP being somewhat worse than the first. Economic growth reportedly slowed down to 3.9% instead of to 4.0%

GDP (Europe):

Exchange Rates 18.08.2022 analysis

As for the US, retail sales data came in much better than expected. Instead of slowing down from 8.4% to 8.1, it accelerated from 8.5% to 10.1%.

Retail sales (United States):

Exchange Rates 18.08.2022 analysis

The stagnation in EUR/USD is most likely in anticipation of today's data on EU inflation, which should rise from 8.6% to 8.9%.

Inflation (Europe):

Exchange Rates 18.08.2022 analysis

Although the data will only confirm the preliminary assessment and not affect anything, there is a chance that slight changes will occur. This is because a further growth in inflation will prompt more active increase in interest rates of the European Central Bank.

Exchange Rates 18.08.2022 analysis

EUR/USD halting near the support level of 1.0150 paused the downward trend and cued a rebound from 1.0150 to 1.0200. This situation can be considered as the accumulation of trading forces, which will eventually lead to a speculative price jump.

Exchange Rates 18.08.2022 analysis

The slowdown and approach of GBP/USD to 1.2150 reduced the volume of long positions, leading to a price rebound. This move almost completely restored dollar positions, bringing the quote to the psychological level of 1.2000. If the pair stays there, another rebound is possible. If not, a breakdown will occur, followed by a drop below 1.1950.

*El análisis de mercado publicado aquí tiene la finalidad de incrementar su conocimiento, más no darle instrucciones para realizar una operación.

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