Crude oil price points lower ahead of EIA inventories
The New Zealand dollar declined in early trading even after relatively strong inflation numbers from the country. According to the statistics bureau, consumer prices rose by 0.5% in the fourth quarter. This was better than the expected increase of 0.1%. The prices increased by 1.4% on an annualised basis. Further data showed that the business PMI fell from 55.3 to 48.7 in December. These numbers came two days after the impressive electronic sales numbers.
The British pound is hovering near the highest level since April 2018 ahead of the UK retail numbers that will come in the morning session. Economists expect the data to show that sales increased by 1.2% after falling by 3.8% in the previous month. This led to an annual increase of 4.0%, which will be better than the previous increase of 2.4%. They see the core retail sales rising by 7.0% due to the strong holiday season. The Office of National Statistics will also publish the country's public debt data.
The economic calendar will have several important events today. In the United States, the Energy Information Administration (EIA) will publish the latest crude oil inventory numbers. These numbers will be released today because Monday was a public holiday and Wednesday was the inauguration. Meanwhile, Markit will release the preliminary PMI numbers from several countries like Germany, UK, and the Us. The US will receive the existing home sales numbers.
The GBP/USD is trading at 1.3718, which is a few pips below yesterday’s high of 1.3745. On the four-hour chart, the price is above the 15-day and 25-day simple moving averages. It is also above the variable dynamic index average. The pair has also formed an ascending triangle pattern that’s shown in yellow. Therefore, there is a possibility that it will break-out higher in the near term.
The EUR/USD continued rising in the overnight session even after the impressive economic data from the United States. The pair is trading at 1.2171, which is the highest it has been since January 14. On the hourly chart, the pair has managed to move above the important resistance at 1.2158. It also seems to be forming an inverse head and shoulders pattern while the price is along the upper line of the envelopes indicator. Therefore, the pair will likely continue rising as bulls target the next resistance at 1.2190.
The XBR/USD is in a tight range ahead of the official inventory numbers from the United States. It is trading at 55.25, which is slightly below the YTD high of 57.31. On the 30-minute chart, the pair has moved slightly below the 25-day and 15-day simple moving averages while the Relative Strength Index (RSI) and the MACD continue to fall. Therefore, the pair will likely continue falling ahead of the inventories data as traders target moves below 55.