Following yesterday’s UK GDP report for April which saw the economy contract by 0.4% monthly, forex traders will keep a close eye on today’s employment data. Despite yesterday’s mix of disappointing UK economic data, which also featured industrial and manufacturing production as well as construction data posting monthly declines, the British Pound remained stable at solid support levels. Will this trend continue and allow bulls to power the GBPUSD to the upside? Besides the key employment report, Bank of England MPC member Tenreyro will speak at a conference in Lisbon, Portugal while his colleagues Saunders and Broadbent will speak in Parliament. How will their testimonies impact forex trading online?
Here are the key factors to keep in mind today for British Pound trades:
- UK Jobless Claims Change and Claimant Count Rate: The UK Jobless Claims Change for May is predicted at 22.9K and the Claimant Count Rate is predicted at 3.0%. Forex traders can compare this to the UK Jobless Claims Change for April which was reported at 24.7K and to the Claimant Count Rate which was reported at 3.0%.
- UK Employment Change, ILO Unemployment Rate and Average Weekly Earnings: The UK Employment Change for the tri-monthly period ending in April is predicted at -1K and the ILO Unemployment Rate is predicted at 3.8%. Forex traders can compare this to the UK Employment Change for March which was reported at 99K and to the ILO Unemployment Rate which was reported at 3.8%. Average Weekly Earnings for the tri-monthly period ending in April are predicted to increase by 3.0% annualized and Average Weekly Earnings Excluding Bonuses are predicted to increase by 3.1% annualized. Forex traders can compare this to Average Weekly Earnings for March which increased by 3.2% and Average Weekly Earnings Excluding Bonuses which increased by 3.3%.
After the US and Mexico reached an agreement which avoided another tariff front for the Trump administration, the US Dollar remained under pressure. Today’s economic calendar will give forex traders a double dose of economic confidence data as well as May’s PPI report. At the same time the US and Mexico have a reached an agreement on border security and immigration, US President Trump has fired another tariff warning towards China. What impact will the ongoing trade war have on today’s confidence data and how will this move price action in the US Dollar? Make sure to have you forex platform properly set-up in order to take advantage of today’s trading opportunities.
Here are the key factors to keep in mind today for US Dollar trades:
- US NFIB Small Business Optimism Index: The US NFIB Small Business Optimism Index for May is predicted at 101.9. Forex traders can compare this to the NFIB Small Business Optimism Index for April which was reported at 103.5.
- US PPI: The US PPI for May is predicted to increase by 0.1% monthly and by 1.9% annualized. Forex traders can compare this to the US PPI for April which increased by 0.2% monthly and 2.2% annualized. The US Core PPI for May is predicted to increase by 0.2% monthly and by 2.3% annualized. Forex traders can compare this to the US Core PPI for April which increased by 0.1% monthly and by 2.4% annualized. The US Core PPI ex Trade for May is predicted to increase by 0.2% monthly and by 2.2% annualized. Forex traders can compare this to the US Core PPI ex Trade for April which increased by 0.4% monthly and by 2.2% annualized.
- US IBD/TIPP Economic Optimism Index: The US IBD/TIPP Economic Optimism Index for May is predicted at 59.2. Forex traders can compare this to the US IBD/TIPP Economic Optimism Index for April which was reported at 58.6.
Should price action for the GBPUSD remain inside the or breakout above the 1.2655 to 1.2745 zone the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.2680
- Take Profit Zone: 1.3100 – 1.3175
- Stop Loss Level: 1.2605
Should price action for the GBPUSD breakdown below 1.2655 the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1.2600
- Take Profit Zone: 1.2400 – 1.2480
- Stop Loss Level: 1.2655
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