On the economic data front, Initial Jobless Claims declined to 1,508K for the week ending June 13th (1,290K expected), from a revised 1,566K in the prior week. Continuing Claims slightly fell to 20,544K for the week ending June 6th (19,850K expected), from a revised 20,606K in the previous week. The Leading Index rose 2.8% on month in May (+2.4% expected), from a revised -6.1% in April, marking a record high.
On Friday, no major economic data is expected.
The Euro was mixed against all of its major pairs. In Europe, the Bank of England has announced it monetary policy decision and kept its benchmark rate on hold at 0.10%, asset purchase target was raised to 745 billion pounds from 645 billion pounds.
The Australian dollar was bearish against most of its major pairs with the exception of the GBP.
Using the "technical Insight" research tools under the Market Analysis tab, we have identified a short-term bearish technical event on the EUR/USD price chart.
The MACD (Moving Average Convergence Divergence) has given a short-term bearish signal. Bullish and bearish events are generated respectively as the MACD fluctuates above and below zero to indicate whether prices in the shorter term are stronger or weaker than the longer term average. A 9-period EMA of the MACD is overlayed as a "signal line" which smooths out the MACD to provide a clearer view of whether it's moving upward or downward. A bullish event is generated when the MACD crosses above the signal line, showing that the current MACD is actually higher than its average, a sign of increasing strength for the price. The opposite is true for bearish events which signal decreasing strength in price as the MACD crosses below the signal line showing that it's now below average.
Technical Insight is able to detect technical events automatically, every day in order to save you valuable research time!
Source: GAIN Capital, Technical Insight