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Forex Signals Brief January 12: UK GDP and US PPI Inflation Closing the Week
Skerdian Meta•Friday, January 12, 2024•3 min read
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Yesterday the data was very light in the Asian and European sessions, but it was the first day of trade for Bitcoin ETFs. We saw little action in the crypto market on Wednesday after the SEC approved the BTC ETFs, however, yesterday Bitcoin surged to $49,000 before retreating back down.
The US inflation report for December was the key event of the day and week. Monthly CPI data indicated a 0.3% increase in both the headline and core numbers. The core fell to 3.9% year on year from 4.0% the previous month, however, it was higher than the projected 3.8% figure.
The headline CPI increased year on year to 3.4% from 3.1% (more than the predicted 3.2%). Shelter, which had been expected to fall, rose by 0.4%. YoY shelter is elevated at 6.2%, although was lower than 6.5% last month. Services less rent increased by 0.6% month over month and 3.5% year on year.
Today’s Market Expectations
Today starts with the inflation data from China. Inflation has been declining in China while it has been surging in the West at the same time. PPI remained at around -3% on an annualized basis in November but today’s reports are expected to show a slight improvement. The headline for the PPI (producer price index) inflation number is expected to come at -2.6% from -3.0% previously, while the CPI (consumer price index) headline number is expected to improve a bit to -0.4% from -0.5% previously.
Later in the day, we have the monthly GDP report from the UK, which comes after a -0.3% contraction in October. November is expected to show a 0.2% expansion, while industrial and manufacturing output is expected to increase again in November after falling in October. Later the US PPI (producer price index) inflation will close the week, with expectations for a slight increase in December after both the headline and core numbers fell flat at 0.0% in November.
BTC/USD – Daily Chart
Ethereum Making Its Way to $3,000
This year, ETH/USD has reached new highs, demonstrating that the trend has been bullish throughout the year, with moving averages pushing lows higher. Buyers returned this week after a temporary retreat, but they were unable to break the previous week’s high of $2,500. On Wednesday, the price fell to $2,127, but then recovered, with the 50 SMA (yellow) functioning as support on the daily chart, and the price soared beyond $2,500 yesterday.
Ethereum – Daily Chart
- ETH Buy Signal
- Entry Price: $1,947.38
- Stop Loss: $1,490
- Take Profit: $2,500
