Big figures abound with lots of door bell ringing going on
There a lot of big figures under pressure right now
- GBPUSD @ 1.3000
- EURUSD at 1.1300
- USDCHF @ 0.9600
- USDJPY still messing at 100.00
- NZDUSD at 0.7300
- USDCAD at 1.2800
What does it all mean?
It means that we could see a domino effect if these levels are broken. There's always higher trading interest around big figures so if we have a lot of pairs, particularly major pairs, knocking around in a place where stops are more likely to be sitting, and in greater amounts than elsewhere on the price ladder, the effect can be magnified. Throw in any large option expiries into the mix and it makes for interesting times.
We're an hour away from the US CPI numbers and there's going to be some nerves around the number following last week's PPI data and today's UK data. Although the UK and US aren't intrinsically linked on the inflation front, the market's mood is what matters as far as expectations go, and based on recent evidence, inflation doesn't look like it will be jumping to the moon anytime soon.