Friday May 15 FX market update - GBP/USD in focus
The US Dollar was bullish against most of its major pairs on Friday with the exception of the CHF and EUR. On the economic data front, Retail Sales dropped 16.4% on month in April (-12% expected), from a revised -8.3% in March, marking a record low. Empire Manufacturing rose to -48.5 on month in May (-60.0 expected), from -78.2 in April. Industrial Production fell 11.2% on month in April (-12.0% expected), from a revised -4.5% in March, marking an all-time low. The University of Michigan's Consumer Sentiment Index increased to 73.7 on month for the May preliminary reading (68.0 expected), from 71.8 in the April final reading. On Monday, no major economic data is expected.
The Euro was bullish against all of its major pairs. In Europe, the European Commission has reported 1Q GDP at -3.8% (vs +0.1% the previous quarter). The German Federal Statistical Office has posted 1Q GDP at -2.2% (as expected). France's INSEE has released final readings of April CPI at +0.3% (vs +0.4% on year expected).
The Australian dollar was bearish against most of its major pairs with the exception of the NZD and GBP.
The GBP/USD dropped 119pips on Friday. Prices remain a bearish trend channel. As long as 1.2175 is not breached to the upside we anticipate a continuation of the trend lower towards support found around the 1.208 and 1.204 price levels.
Source: GAIN Capital, TradingView
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