- The British Pound[1] is on the move this morning after a disappointing release of March inflation numbers. Inflation came in at 2.5% to mark the second consecutive month of slower price growth, and this helped to elicit a pullback in the British Pound. GBP/USD[2] remains messy, although a cleaner setup may be available in GBP/JPY[3].
- US Equities continue to run higher, furthering the move after the bullish breakout earlier this week. We’re in the midst of earnings season out of the US, and that will continue into month-end; but on a bigger picture basis the concern is the increase in volatility that’s shown in the equity space so far this year. This highlights diminishing marginal impact of the ‘buy the dip’ strategy of old, and this urges caution for traders looking to take on bullish exposure whilst at or near short-term highs.
- DailyFX Forecasts have been updated for Q2, and are available from the DailyFX Trading Guides page[4]. If you’re looking to improve your trading approach, check out Traits of Successful Traders[5]. And if you’re looking for an introductory primer to the Forex market, check out our New to FX Guide[6].
Do you want to see how retail traders are currently trading the US Dollar? Check out our IG Client Sentiment Indicator[7].
UK Inflation Comes In Below Expectations
The early part of the week started with a bang in the British Pound as the currency surged up to fresh post-Brexit highs[8] against the US Dollar[9]. This was just ahead of March inflation numbers,
