GBP/JPY Crosses 166 Ahead of UK Data Dump

Asian Indices

• The ASX 200 index for Australia increased by 75.2 points (1.09%) and is now trading at 6,969.40.
• The Nikkei 225 index of Japan is now trading at 28,215.57 after increasing by 150.29 points (0.54%).
• The Hang Seng index in Hong Kong has increased by 507.63 points (2.69%) and is now trading at 19,362.25
• A50 Index for China is currently trading at 13,416.87 after increasing by 221.79 points (1.68%).

UK and Europe

• The FTSE 100 futures for the UK are up 13.5 points (0.18%) at the moment, and the cash market is anticipated to open at 7,364.57.
• Futures for the Euro STOXX 50 are currently up 24 points (0.67%), and the cash market is anticipated to start at 3,594.04 today.
• The DAX futures in Germany are up 98 points (0.75%) at the moment, and the cash market is anticipated to open at 13,186.21.

US Futures

• Currently, DJI futures are down -1 point (0%).
• Futures for the S&P 500 are now down 9.5 points (-0.08%).
• The latest decline in the Nasdaq 100 futures is 1.75 points (-0.04%).

Sentiment slightly improved after it was revealed that Ukraine had defeated Russia militarily over the weekend. This resulted in a generally greater trading range for Asian benchmark indexes, along with index futures for European markets.

Currently, the euro is the most powerful currency, closely followed by the pound, while the yen is the least strong. As per the reports that the ECB may need to raise interest rates to a minimum of 2% to combat inflation.

Focus on UK statistics 

Several UK data sets, including GDP estimates, manufacturing, industrial, and trade data, are expected to be released at 07:00. Based on the top forex analysts, the GDP estimates for July are expected to increase from June’s distorted -0.6% number caused by the Queen’s Jubilee public holiday. The same factor caused a decline in construction, manufacturing, and industrial output in June, and any additional weakness in today’s report could have a negative impact on the British pound. Henceforth, traders are advised to read more about such data sets before trading.

The pound has been dragged higher by the euro, and the GBP/JPY has evaluated 166 ahead of today’s public report. The 1-hour chart suggests that GBP/JPY has probably finished a 3-wave regression, where a break over 166.35 assumes the restart of its bull market. However, as long as prices are below the tolerance threshold, we should be on the lookout for the formation of making goods. Additionally, overbought and on the verge of generating a sell signal is the probability modulator.