UK CPI 12-months rate was unchanged, EA annual inflation rate was up, U.S. Housing Starts Plunge, and Beige book trace tariff concerns.
The dollar index had advance overnight but failed to breach June high 95.25, Gold was recovered from intraday lows and closed neutral, Brent edged higher by 1.75$ and Bitcoin moved up by 10$.

Succinct review:

The annual inflation rate for UK and EA remain stable. Quick reaction was cable re-tested the 1.30 handle, and the EURUSD stay in the range. US Housing starts are weaker than expected.

UK CPI: GBP fell with the latest UK inflation data. Annual UK inflation remains unchanged at 2.4% in June 2018 from May 2018. The forex market is preparing for the August rate hike, but the data out is keeping the lid on the growing rate hike probabilities.

EA CPI: Euro area annual inflation rate was 2.0% in June 2018, up from 1.9% in May 2018. The euro area flash estimate for June 2018, published on 29 June 2018, was 2.0%. The next flash estimate of euro area inflation with data for July 2018 is scheduled for 31 July 2018.

Housing Starts: Residential starts annual rate fell to 12.3% to 1.17m. Building permits in June fell 2.2% to 1.27m.

Beige book: The July Beige book expressed “Economic activity continued to expand” across the Federal Reserve Districts with 10 of the 12. In the first paragraph itself, the Beige book raised concern about tariffs, especially in the Manufacturing sector. “Manufacturers in all Districts expressed concern about tariffs and in many Districts reported higher prices and supply disruptions that they attributed to the new trade policies.” The book also expressed “All Districts reported that labor markets were tight”. With the recent dollar strength, Consumer spending was up in all districts.
Regarding prices “The extent of pass-through from input to consumer prices remained slight to moderate.”

What’s on today?
UK Retail sales, Philly Fed manufacturing Index and Unemployment claims.

Chart of the day: GBPAUD

Read: AUDUSD technical overview

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