For the single European currency, today is expected to be quite a difficult day. May indexes of business activity in Spain, Italy, and France will be published at the beginning of the forex trading session. The German PMI composite index and Eurozone PMI final data should also come out along with April Eurozone retail sales data.
At the same time, US President Donald Trump, willingly or unwittingly supported the GBP with a statement of intent to sign a trade agreement with the UK.
According to forecasts, the Spanish and Italian data will either remain unchanged or worsen. The German release and the European overall are likely to remain unchanged. All this may put pressure on the euro in light of the upcoming release on US labor statistics, which promises to be quite strong, once again.
At the moment, the EURUSD pair is trading with a slight increase at 1, 1263.
The May index of business activity in the services sector in the UK is projected to remain at a fairly stable level of 50.9. In case of its unexpected decline, GBP will certainly be affected negatively. In addition to these figures, the pound will continue to be affected by contention in the British Parliament over the Brexit issue.
Yesterday, the British currency went up after the US President Donald Trump announced his intention to sign a trade agreement with London after leaving the EU. The pair GBPUSD rose 0.3% to reach 1.2692.
At the moment, GBPUSD is trading with an increase of 1, 2715.
On the eve, the US rate slightly increased after the head of the national regulator Jerome Powell said that the US Federal Reserve will act "as expected" in light of the growing tensions in world trade relations and the general slowdown in global economic growth.
By the end of the session, the US dollar index rose 0.1% to 97,127. Powell also said that the US central bank is very closely monitoring the trade conflict between Washington and Beijing, which has become the main cause of instability in global markets.
Forex trading recommendations:
AUDUSD: Buy. Entry point – 0, 6996. Take Profit – 0, 7010. Stop Loss – 0, 6972.
EURUSD: Sell. Entry point – 1, 1266. Take Profit – 1, 1256. Stop Loss – 1, 1281.
NZDUSD: Sell. Entry point – 0, 6638. Take Profit – 0, 6626. Stop Loss – 0, 6659.
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