A strong USD in Thursday's trading puts pressure on the GBP
The US Dollar was bullish against all of its major pairs on Thursday. On the economic data front, Initial Jobless Claims declined to 2,438K for the week ending May 16th (2,400K expected), from a revised 2,687K in the week before. Continuing Claims surged to 25,073K for the week ending May 9th (24,250K expected), from a revised 22,548K in the previous week, marking another record high. Markit's US Manufacturing Purchasing Mangers' Index rose to 39.8 on month in the May preliminary reading (40.0 expected), from 36.1 in the April final reading. The Leading Index fell 4.4% on month in April (-5.4% expected), compared to a revised -7.4% in March. Existing Home Sales contracted to 4.33 million homes on month in April (4.22 million homes expected), from 5.27 million homes in March. On Friday, no major economic data is expected.
The Euro was bullish against most of its major pairs with the exception of the GBP, JPY and USD. In Europe, Research firm Markit has published preliminary readings of May Manufacturing PMI for the Eurozone at 39.5 (vs 38.0 expected), for Germany at 36.8 (vs 39.4 expected), for France at 40.3 (vs 36.0 expected) and for the U.K. at 40.6 (vs 37.2 expected). Also, preliminary readings of May Services PMI were publish for the Eurozone at 28.7 (vs 25.0 expected), for Germany at 31.4 (vs 26.0 expected), for France at 29.4 (vs 28.0 expected) and for the U.K. at 27.8 (vs 24.0 expected).
The Australian dollar was bearish against all of its major pairs.
The GBP/USD currency pair is in focus. Prices remain in a bearish trend channel on a 15-min chart. The 1.225 level above should act as resistance on the decline. Look for a continuation lower towards 1.2185 support and ultimately 1.215. A break above 1.225 may lead the pair higher towards 1.2295.
Source: GAIN Capital, TradingView
StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.