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Friday, May 29th
On Thursday, GBP/USD went down after data release of UK GBP, which was slightly weaker than expected. GBP fell to 1.5259 before consolidating at 1.5323 during the Asian session today.
EUR/GBP soared to 0.7151 in the late European trade and continued its rise to 0.7162 today after mixed data on German retail sales in April. The pair is currently trading in the narrow range with session lows around 0.7140. The Greek situation remains an important point of attention and EMU’s M3 Money Supply is due later in the day with expectations of 4.9% reading. The pair is likely to find support at 0.7036 (low of March 12) and resistance at 0.7187 (high of May 20).
EUR/USD was up yesterday, reaching the 1.0958. The single currency found support after the Greek Government reported that it was coming closer to the agreement with its international creditors. However, the European Officials later said there was still much work to do with negotiations before reaching the agreement. Today’s retails sales data from Germany pushed EUR/USD even higher to 1.0960 levels, but the pair is erasing its gains currently trading at 1.09336. The closest resistance is seen at 1.0960 after which the psychological resistance is at 1.10. On another side, if a fall below 1.0930 is seen, the pair might find resistance at 1.0866 – the previous session’s low.
The demand for the dollar remained high after the Fed’s hawkish reports and series of positive reports during the previous weeks, which indicates that American economy is gaining momentum after a slowdown in the first quarter. Although, yesterday’s report showed the number of initial jobless claims rose last week, which contributed to the downward movement of the U.S. dollar index.
USD/JPY was at its highest since June 2002 yesterday, reaching the level of 124.45. Earlier this morning, yen was stronger after mixed data from Japan, including National CPI (YoY), Jobs/applications Ratio and household spending. Traded at 123.82, the pair is likely to find support at 122.76 and resistance at 124.47.
Ahead in the day, the markets are watching the American data, including GDP, and Canadian statistics.
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