The USD remains under pressure
Gary Christie May 21, 2020 6:08 AM
The USD remains under pressure, We focus in on one major pair.
The USD remains under pressure
The US Dollar was bearish against most of its major pairs on Wednesday with the exception of the GBP. On the economic data front, the Mortgage Bankers Association's Mortgage Applications fell 2.6% for the week ending May 15th, from 0.3% in the prior week. The Federal Open Market Committee (FOMC) released the April 29th Meeting Minutes, which stated that financial markets had shown improvement as a result of the actions taken by the Fed, strong fiscal measures and indications that the coronavirus spread was slowing. The Fed went on to say that the economic outlook is still uncertain due to the lagging affects of the coronavirus on the global economy.
On Thursday, Initial Jobless Claims for the week ending May 16th are expected to decline to 2,400K, from 2,981K in the week before. Continuing Claims for the week ending May 9th are expected to rise to 23,500K, from 22,833K in the previous week. Markit's US Manufacturing Purchasing Mangers' Index for the May preliminary reading is expected to rise to 39.5 on month, from 36.1 in the April final reading. The Leading Index for April is expected to decrease 5.4% on month, compared to -6.7% in March. Finally, Existing Home Sales for April are expected to slip to 4.22 million homes on month, from 5.27 million homes in March.
The Euro was bullish against most of its major pairs with the exception of the NZD, AUD and CHF. In Europe, the European Commission has posted final readings of April CPI at +0.3% (vs +0.4% on year expected). The U.K. Office for National Statistics has released April CPI at +0.8% (+0.9% on year expected) and April PPI at -0.7%, vs -0.5% expected.
The Australian dollar was bullish against most of its major pairs with the exception of the NZD.
Looking at the major currency pair movers, the USD/CHF
fell 67 pips to 0.9646 the day's range was 0.9638 - 0.9717 compared to 0.9699 - 0.9730 in the previous session. From a technical perspective the USD/CHF broke below a consolidation zone in place since May 12th. Key resistance is at 0.967. The 20-period moving average is trending lower as the pair starts a new bearish trend. Look towards the 0.961 support level for a target as long as the currency pair remains below 0.967.
Source: GAIN Capital, TradingView
From time to time, GAIN Capital Australia Pty Ltd (“we”, “our”) website may contain links to other sites and/or resources provided by third parties. These links and/or resources are provided for your information only and we have no control over the contents of those materials, and in no way endorse their content. Any analysis, opinion, commentary or research-based material on our website is for information and educational purposes only and is not, in any circumstances, intended to be an offer, recommendation or solicitation to buy or sell. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. No representation or warranty is made, express or implied, that the materials on our website are complete or accurate. We are not under any obligation to update any such material.
As such, we (and/or our associated companies) will not be responsible or liable for any loss or damage incurred by you or any third party arising out of, or in connection with, any use of the information on our website (other than with regards to any duty or liability that we are unable to limit or exclude by law or under the applicable regulatory system) and any such liability is hereby expressly disclaimed.