Business

Chart overview of May 6th for EURUSD and GBPUSD

  • During the Asian session, the euro weakened against the dollar.
  • During the Asian session, the British pound continued its negative consolidation against the dollar.
  • German industrial production fell more than expected in March,

EURUSD chart analysis

During the Asian session, the euro weakened against the dollar. The 10-year US Treasury yield surged 3%, which is excellent news that boosted the dollar again. The US Federal Reserve decided last night to raise interest rates by 0.50% for the first time since 2000. A meeting of political representatives of EU member states is still taking place today and a new package of sanctions against Russia is being discussed. The embargo on oil imports until the end of this year is on the horizon, portending difficult days for the euro zone economy and that’s why the euro will stumble. Currently, the euro is trading at $1.05580, marking a 0.11% gain in the single European currency since the start of tonight’s trading. Regular monthly (NFP) data from the US labor market are expected in the afternoon before the start of the US session. The expectation for the number of newly created jobs in April is around 391,000. The unemployment rate is expected to fall further from 3.6% to 3.5%. Looking at the chart for the bullish option, we need the continuation of the positive consolidation that started at the beginning of the European session. First we need to retest today’s high of 1.05800. After that, our target is 1.06000, where yesterday’s decline started. Our next potential bullish target is yesterday’s high at 1.06420. For the bearish option, we need negative consolidation and a pullback in EURUSD to this morning’s low at 1.04815. A EURUSD break below this support would make a new lower low this year.

Diagram:

EURUSD chart analysis

GBPUSD chart analysis

During the Asian session, the British pound continued its negative consolidation against the dollar. At yesterday’s regular meeting, the Bank of England raised the benchmark interest rate to 1% from 0.75%. However, the island’s central bank’s view of the gloomy picture of the state of the UK economy put the pound under severe pressure despite the rate hike. The US Federal Reserve decided last night to raise interest rates by 0.50% for the first time since 2000. This difference and post-Brexit tensions with the EU over key details of future relations brought the British currency down. The pound will trade for $1.23450, dragging the British currency down 0.10% since the start of tonight’s trading. For the bullish option, we need the continuation of this morning’s positive consolidation. The first obstacle for the continuation of the uptrend lies in the 1.23800-1.24000 zone. If the pound rises above this zone we can expect the rally to continue first to 1.24500 and then to 1.25000.

Diagram:

GBPUSD chart analysis

Market Overview

German industrial production According to data from Destatis on Friday, the number fell more than expected in March. Industrial production fell 3.9% on a monthly basis in March, well above economists’ forecast of -1.0% and reversing February’s revised 0.1% growth. Industrial production excluding energy and construction fell by 4.6% in March.

Bank of England Chief economist Hugh Pill said the central bank faces balanced decisions about how far interest rates could be raised to control rising inflation without hurting an economy threatened with recession.

The BoE hiked interest rates for a fourth straight session on Thursday, despite saying the UK was at risk of recession after inflation topped 10% later this year.

Pill said energy and imported goods prices could be slightly higher than the BoE had expected. Pill said the BoE is not focused on short-term market reactions.

BONUS VIDEO: Weekly news roundup from the markets

  • support

  • platform

  • Spread

  • trading instrument

Get the latest business news, trading news and forex news financial intermediation. Check out our comprehensive trading education and list of the best forex brokers here. If you are interested in following the latest news on this topic, please follow Finance Brokerage Google news.

https://www.financebrokerage.com/06-may-chart-overview-for-eurusd-and-gbpusd/ Chart overview of May 6th for EURUSD and GBPUSD

Callan Tansill

InternetCloning is an automatic aggregator of the all world’s media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials, please contact us by email – admin@internetcloning.com. The content will be deleted within 24 hours.

Related Articles

Back to top button