Tuesday May 12 FX market update - GBP/USD under pressure

The GBP/USD dropped 60pips to 1.2275 in Tuesday's trading making it one of the largest movers.

FOREX 8

Tuesday May 12 FX market update - GBP/USD under pressure

The US Dollar was bearish against most of its major pairs on Tuesday with the exception of the CAD and GBP. On the economic data front, the National Federation of Independent Business's Small Business Optimism Index fell to 90.9 on month in April (83.0 expected), from 96.4 in March, a level last seen in 2013. The Bureau of Labor Statistic's Consumer Price Index declined 0.8% on month in April (as expected), from -0.4% in March, marking a low last seen in 2008. The Monthly Budget Deficit jumped to 737.9 billion dollars on month in April (737.0 billion dollars expected), from 160.3 billion dollars in March, marking a record Monthly Budget Deficit. 

On Wednesday, the Mortgage Bankers Association's Mortgage Applications data for the week ending May 8th is expected. Finally, the Producer Price Index Final Demand for April is expected to decrease 0.5% on month, from -0.2% in March.                                       

The Euro was bullish against all of its all pairs. In Europe, The Banque de France's industrial business climate index came out at 48 in April, compared with 52 in March (revised from 51) and 40 anticipated by economists. The institution indicated that economic activity in France fell by 27% in April, a slight improvement on the decline observed in March.

The Australian dollar was bearish against most of its major pairs with the exception of the CAD, GBP and USD.

The GBP/USD dropped 60pips to 1.2275 in Tuesday's trading making it one of the largest movers. Looking at key levels to watch. Resistance can be seen at the 1.2315 level with first support at 1.2245. The preferred technical scenario is bearish towards 1.222 as long as 1.2315 resistance has not been touched. 



Source: GAIN Capital, TradingView


Happy trading.

More from Forex

Related Articles

Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.

Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to Forex.com or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.