The US Dollar Index (DXY) recovers from yesterday’s bottom at 93.15 and finds resistance at 94.00 mark.
The move towards today’s resistance may be seen as nothing more than profit taking from recent bear runs on Dollar and is unlikely to continue during next week’s trade. Better, only just, GDP readings for the Eurozone give little brighter light at the end of the tunnel for the Eurozone troubles. Same goes for UK where GDP Estimate reading showed an increase by 0.1% to 0.4% for the first three quarters of 2015.
EURUSD
The single currency finds more buyers across the board of currencies and thus signaling continuation in the recent bullish trend versus the greenback. Thursday’s rally left Euro bulls a bit disappointed having been unable to stay much above 1.14, however after a short correction 1.15 target will be on agenda next week. The area of 1.1350 remains fairly supported but break below 1.1320 could see potential retrace to 1.1180 – 1.1200
GBPUSD
The cable trims recent gains but since the British Pound broke through some key resistance levels across the majors’ board with ease and not much retrace, the market is likely to come down towards 1.5550 before another bull run above 1.58 targeting 1.60 will occur.
Traders should bear in mind some key economic events, which will occur next week as high volatility is expected.
Wednesday 20/May Non-monetary ECB meeting
Wednesday 20/May Bank of England interest rate decision vote
Wednesday 20/May FOMC Minutes
Thursday 21/May ECB Monetary Policy Meeting Accounts followed by ECB President Mario Draghi’s speech
Friday 22/May ECB President Mario Draghi’s speech followed by Inflation data from US
The move towards today’s resistance may be seen as nothing more than profit taking from recent bear runs on Dollar and is unlikely to continue during next week’s trade. Better, only just, GDP readings for the Eurozone give little brighter light at the end of the tunnel for the Eurozone troubles. Same goes for UK where GDP Estimate reading showed an increase by 0.1% to 0.4% for the first three quarters of 2015.
EURUSD
The single currency finds more buyers across the board of currencies and thus signaling continuation in the recent bullish trend versus the greenback. Thursday’s rally left Euro bulls a bit disappointed having been unable to stay much above 1.14, however after a short correction 1.15 target will be on agenda next week. The area of 1.1350 remains fairly supported but break below 1.1320 could see potential retrace to 1.1180 – 1.1200
GBPUSD
The cable trims recent gains but since the British Pound broke through some key resistance levels across the majors’ board with ease and not much retrace, the market is likely to come down towards 1.5550 before another bull run above 1.58 targeting 1.60 will occur.
Traders should bear in mind some key economic events, which will occur next week as high volatility is expected.
Wednesday 20/May Non-monetary ECB meeting
Wednesday 20/May Bank of England interest rate decision vote
Wednesday 20/May FOMC Minutes
Thursday 21/May ECB Monetary Policy Meeting Accounts followed by ECB President Mario Draghi’s speech
Friday 22/May ECB President Mario Draghi’s speech followed by Inflation data from US
