A strong USD in Thursday trading puts pressure on the GBP

,

The US Dollar was bullish against all of its major pairs on Thursday. The GBP/USD currency pair is in focus

Charts (2)

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

Happy trading.

More from Forex

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.