This is Forex trading plan for Thursday, May 24.
On Wednesday, the USD index jumped to 94.00. The strengthening of the US currency resulted in big slides in EUR/USD and GBP/USD. Commodity currencies – AUD, NZD, and CAD – depreciated versus the greenback. The only failure of the USD was against the Japanese yen: USD/JPY fell from 110.90 and tested support at 109.60. “FX is back to life,” one of the analysts commented speaking about the recent moves of the market.
Euro area’s PMIs and British inflation figures both disappointed. Now there are serious doubts that the Bank of England will raise interest rates this year. Britain’s future relationship with the European Union remains unclear. The negotiations continue, and there may be a statement on Thursday.
On Thursday as well, the Bank of England’s Governor Mark Carney will deliver a speech. In addition, pay attention to British retail sales at 11:30 MT time (the forecast is positive). The European Central Bank will publish accounts of its latest meeting at 14:30 MT time.
EUR/USD met support at 1.1680 (weekly pivot support and top of the weekly Ichimoku Cloud). A decline below this level will open the way down to 1.1600. If the euro manages to return above 1.1710, its recovery will likely be limited by the downtrend resistance line in the 1.1760 area.
GBP/USD was supported by 1.33. The loss of this level will bring the pound to 1.3250 – the ultimate weekly target. Resistance at 1.34 should be strong.
Finally, if USD/JPY manages to close above the 200-day MA at 110.15 on Wednesday – and even better if it rises above 110.35 – it will try to consolidate between it and 110.85.
Good luck with your Forex trading! Get ready for another exciting trading day!
For a long time, traders considered American Non-farm Payrolls (NFP) the most important release in the market. However, the situation has changed. Now US CPI moves financial markets.
The higher prices seen today are generally related to the pandemic, that’s no doubt. US consumer prices jumped in October at the fastest pace in three decades putting the Biden administration on the defensive and increasing prospects that the Federal Reserve will raise interest rates next year. Jerome Powell says Fed will discuss speeding up bond-buying taper at the December meeting. What does it mean for markets?
It seems like most of the assets have joined Black Friday's sell-off with global indices, risky currencies, and commodities going down.
Although the last week was intense, this one may be more dynamic and volatile. After the FOMC meeting and controversial decisions from the Bank of England, we saw a historical pound decrease, and the gold plunge. And there’s even more for you.
After the US CPI last week came out above the forecast, traders started expecting a 75-basis point rate hike…
In this video, we will talk about the potential change of a trend in the euro, another stock rally amid a global downtrend, gold prospects, and news that shakes the world right now. It’ll be a helpful video you don’t want to miss.
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Don’t waste your time – keep track of how NFP affects the US dollar and profit!
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