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CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
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The USD remains under pressure

Article By: ,  Financial Analyst
May 20, 2020 5:08 PM

The USD remains under pressure

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

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