ETHUSD SOARS TO MONTHLY HIGH AS CRYPTO RECOVERY ACCELERATES

The British pound declined slightly after the latest UK consumer inflation data. According to the Office of National Statistics (ONS), prices surged by 9.4% in June after rising by 9.1% in May. The increase was better than the median estimate of 9.3%. Excluding the volatile food and energy prices, inflation declined from 5.9% to 5.8%. These numbers came a day after the ONS published strong jobs numbers. Therefore, analysts believe that the Bank of England (BoE) will hike interest rates by 0.50% in its upcoming meeting in August. This is in line with what Andrew Bailey said on Tuesday.

The Canadian dollar is hovering near the highest level since July 6 after the latest inflation data. The data showed that prices continued soaring in June as the cost of food and fuel rose. The headline CPI rose from 7.7% to 8.1% in June. This was the highest level in more than three decades. The core CPI rose from 6.1% to 6.2%. Other inflation gauges like industrial and retail price indexes continued rising in June. These numbers came a week after the Bank of Canada surprised the market by hiking interest rates by 100 basis points. Therefore, there is a possibility that the BoC will continue with its hawkish tone this year.

The euro pulled back even after the positive signs from Italy. In a statement, Mario Draghi said that he will remain as prime minister because of the overall public outcry. Draghi, the former ECB president offered to resign last week due to disagreements with the Five Star Movement members. Some members of the movement vowed to support the prime minister, who has established a relative calm in the country. The euro also dropped as investors waited for the upcoming European Central Bank (ECB) interest rate decision.

EURUSD

The EURUSD pair declined slightly as the strong recovery faded. The pair is trading at 1.0200, which is slightly below this week’s high of 1.0260. On the four-hour chart, the Average Directional Index (ADX) has formed a bearish divergence pattern. The Relative Strength Index (RSI) has moved slightly below the overbought level. The pair will likely resume the bullish trend ahead of the ECB decision.

GBPUSD

The GBPUSD pair pulled back even after the strong consumer inflation numbers from the UK. The pair dropped to a low of 1.1990, which was lower than this week’s high of 1.2060. It is also slightly above the descending trendline shown in green. The Relative Strength Index (RSI) has moved slightly below the overbought level. Like the EURUSD, it will likely resume the bullish trend during the American session.

ETHUSD

The ETHUSD pair continued its recovery as cryptocurrency prices rebounded. The pair rose to 1,592, which was the highest level since June 12th this year. It is above the important support level of 1,290 and the 25-day and 50-day moving averages. The MACD and the Relative Strength Index (RSI) have made a bearish divergence pattern. Therefore, the pair will likely have a pullback during the American session.