Wednesday May 06 FX Market Wrap GBPUSD in focus

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By :  ,  Financial Analyst

Wednesday May 06 FX Market Wrap - GBP/USD in focus

Good afternoon, 

Wednesday May 06 FX Market Wrap - GBP/USD in focus

The US Dollar was bullish against most of its major pairs on Wednesday with the exception of the JPY. On the economic data front, the Mortgage Bankers Association's Mortgage Applications rose 0.1% for the week ending May 1st, from -3.3% in the week before. Automatic Data Processing's Employment Change Report plummeted to -20,236K on month in April (-20,550K expected), from a revised -149K in March, marking a record low. 

On Thursday, Initial Jobless Claims for the week ending May 2nd are expected to fall to 3,000K, from 3,839K in the prior week. Finally, Continuing Claims for the week ending April 25th are expected to rise to 19,800K, from 17,992K in the previous week.                     

The Euro was bearish against most of its major pairs with the exception of the NZD, CAD and GBP. In Europe, following the German Constitutional Court decision, European Commission spokesman Eric Mamer said: "Notwithstanding the analysis of the decision of the German Constitutional Court today, we reaffirm the primacy of E. U. law." Research firm Markit has published final readings of April Services PMI for the Eurozone at 12.0 (vs 11.7 expected), for Germany at 16.2 (vs 15.9 expected) and for France at 10.2 (vs 10.4 expected). The Markit U. K. Construction PMI for April has also been released at 8.2 (vs 21.7 expected). The European Commission has posted March retail sales at -11.2% (vs -10.6% on month expected). The German Federal Statistical Office has reported March factory orders at -15.6% (vs -10.0% on month expected). The European Union is forecasting a 7.7% GDP drop in 2020 before a 6.3% rebound in 2021.

The Australian dollar was bullish against most of its major pairs with the exception of the JPY and USD. 

Regarding major FX pairs,

• EUR/USD fell 46pips to 1.0794 the day's range was 1.0782 - 1.0846 compared to 1.0826 - 1.0926 the previous session.

• GBP/USD dropped 94pips to 1.2341 the day's range was 1.2335 - 1.2450 compared to 1.2421 - 1.2484 the previous session.

• USD/JPY declined 46pips to 106.11 the day's range was 105.99 - 106.63 compared to 106.42 - 106.90 the previous session.

• USD/CHF rose 25pips to 0.9752 the day's range was 0.9721 - 0.9759 compared to 0.9646 - 0.9735 the previous session.

• AUD/USD fell 29pips to 0.6402 the day's range was 0.6394 - 0.6453 compared to 0.6417 - 0.6476 the previous session.

• USD/CAD jumped 88pips to 1.4137 the day's range was 1.4023 - 1.4157 compared to 1.4008 - 1.4095 the previous session.

• The dollar index gained 0.48pt to 100.189 the day's range was 99.751 - 100.199 compared to 99.299 - 99.970 the previous session.

FX pair in focus, 

The GBP/USD fell the most regarding the majors in Wednesday's U.S. session. The pair remains capped by the 20-period moving average on the decline. Key resistance is set at 1.239 on an intraday 30-min chart. As long as 1.239 is not breached to the upside we are anticipation a continuation of the decline towards 1.23 support. 

Source: GAIN Capital, TradingView

Happy Trading.
Related tags: Forex Forex GBP USD

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