CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please ensure that you fully understand the risks involved. CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please ensure that you fully understand the risks involved.

EUR/USD, GBP/USD and AUD/USD continue to grind higher

EUR/USD, GBP/USD and AUD/USD grind higher, with traders reacting to the latest UK inflation figure.

AUD Source: Bloomberg

EUR/USD pushing higher in bullish continuation move

EUR/USD looks set to continue its recent resurgence, with the pair seeking to follow up on the four-month high established yesterday.

The recent consolidation has seen the pair attempt to resolve the question of whether we will post a downside retracement of note or simply push higher once again. The failure to break below the $1.0271 signified the latter, with prices pushing upwards once again today.

As such, further gains seem likely, with a move back below the $1.0271 required to signal a potential short-term reversal of the recent spike.

EUR/USD chart Source: ProRealTime
EUR/USD chart Source: ProRealTime

GBP/USD comes into focus after surge in UK CPI

GBP/USD has similarly been gaining ground in the wake of the risk-on move sparked by Thursday’s US consumer price index (CPI) decline. However, today has seen inflation come back into play today, with the latest UK CPI figure of 11.15% signaling a huge divergence coming into play between the UK and US inflation figures.

Quite whether this will create any divergence in monetary policy remains to be seen, with market pricing in a higher chance of a 75-basis point (bs) rate hike in response. As things stand the market reaction has been muted, with market weighing up any shifts in monetary policy with the expectations of a more prolonged economic downturn in the UK if inflation is not brought under control.

As things stand, GBP/USD looks set for further upside, with a decline through the $1.171 swing low required to bring expectations of a pullback for the pair.

GBP/USD chart Source: ProRealTime
GBP/USD chart Source: ProRealTime

AUD/USD continues to grind higher

AUD/USD has continued its move higher, with the risk-on sentiment seen throughout markets bringing about a positive phase for this pair.

While last week saw the index spike upwards, we are seeing a more considered approach this week. Nonetheless, this grind higher does look likely to persist unless price falls back through the $0.6663 swing low.

Look out for further volatility ahead, with the latest Australian jobs report due out tomorrow morning.

AUD/USD chart Source: ProRealTime
AUD/USD chart Source: ProRealTime

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