The USD continues to weaken
Gary Christie June 3, 2020 10:06 PM
The EUR/USD had the largest move on Wednesday gaining 65 pips. Will the uptrend continue?
The USD continues to weaken
The US Dollar was bearish against most of its major pairs on Wednesday with the exception of the JPY.
On the economic data front, the Mortgage Bankers Association's Mortgage Applications fell 3.9% for the week ending May 29th, from +2.7% in the week before. Automatic Data Processing's Employment Change rose to -2,760K on month in May (-9,000K expected), from a revised -19,557K in April. Factory Orders decreased 13.0% on month in April (13.4% expected), from a revised -11.0% in March. Durable Goods Orders dropped 17.7% on month in the April final reading (-17.2% expected), from -17.2% April preliminary reading.
On Thursday, the Trade Deficit for April is expected to increase to 49.2 billion dollars on month, from 44.4 billion dollars in March. Initial Jobless Claims for the week ending May 30th are expected to fall to 1,843K, from 2,123K in the prior week. Finally, Continuing Claims for the week ending May 23rd are expected to slide to 20,050K, from 21,052K in the previous week,
The Euro was bullish against most of its major pairs with the exception of the NZD. In Europe, research firm Markit has published final readings of May Services PMI for the Eurozone at 30.5 (vs 28.7 expected), for Germany at 32.6 (vs 31.4 expected), for France at 31.1 (vs 29.4 expected) and for the U.K. at 29.0 (vs 28.0 expected). The European Commission has posted April jobless rate at (vs 8.2% expected) and PPI at (vs -4.2% on year expected). The German Federal Statistical Office has reported May jobless rate at 6.3% (vs 6.2% expected).
The Australian dollar was bullish against most of its major pairs with the exception of the NZD and EUR.
Looking at the USD, the dollar index fell dropped 0.37pt to 97.30 as the USD continues to slip. The EUR/USD had the largest move on Wednesday gaining 65 pips to 1.1235. The day's range was 1.1167 - 1.1257. Looking at the pair, prices remain in a bullish trend channel after confirming a couple of classic triangle continuation patterns. As long as price action remains above 1.1185 support look for a continuation of the trend.
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.