All momentum indicators pointing to short... we can make quick 20-25 pips profit.
- Manufacturing Production posted a strong gain of 1.3%, but the pound was unable to take advantage against the dollar.
- News Monday, 00:01. This housing inflation index provides a snapshot of the level of activity in the housing sector. The index has posted two straight declines.
- News on BoE Governor Mark Carney Speech: Monday, 18:30. Carney will deliver remarks at the London School of Economics. A speech which is more hawkish than expected is bullish for the British pound.
- News on CPI: Tuesday, 9:30. CPI is one of the most important indicators and should be treated as a market-mover. The index improved in November, posting a gain of 1.2%, edging above the forecast of 1.1%. The upward swing is expected to continue in December, with an estimate of 1.4%.
The US economy enters 2017 in excellent shape and the inauguration of Trump at the end of the week could raise expectations for fiscal stimulus, boosting the US dollar.
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