UK inflation data to fall further

<p>The euro was the key player yesterday after most pairs were being very quiet with half-term in the UK and the bank holiday in the […]</p>

The euro was the key player yesterday after most pairs were being very quiet with half-term in the UK and the bank holiday in the US. The euro had a late sell-off, breaking below the 1.1400 level as the uncertainty of the Greek deal persists and no agreement is on the table. There are still more comments to come with the outcome and any type of deal will most likely to be pushed to the latest time frame it can.

The data out today is from the German ZEW, and is expected to be higher than the previous 55.4, and the EU ZEW is also expected to be better at 51.3.

The RBA minutes last night gave the AUD/USD a lift to break above the 0.7800 level but this has failed to hold above as it wasn’t as clear as it may have seemed to cut rates again next month, but still a possibility.

The UK CPI is to be released this morning with another drop expected as low as 0.3%, which fits in with what was expected from the quarterly expectations last week by the BoE, who suggested that the inflation will stay near zero for 2015. How much of this is priced in is the key, but a drop to zero would shock. GBP/USD is currently trading below the 1.5400 level after a sell-off this morning, due to positioning for the release.



 1.1300-1.1250-1.1190  | Resistance  1.1410-1.1475-1.1520



118.20-117.95-117.60  | Resistance 118.75-119.05-119.30



1.5320-1.5270-1.5210   | Resistance 1.5425-1.5485-1.5530

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