May 17 The pound continued to strengthen after reports of a decline in unemployment in the UK. At the same time, the European currency also strengthened against the US dollar, after the publication of data on consumer price increases in the euro-zone. The US dollar is still losing ground, being under pressure from weak economic data and growth and political uncertainty in the United States.
Statistics: Italy’s trade balance in March was 5.420 billion, with a forecast of 1.970 billion. The average wage in the UK, taking into account premiums, increased by 2.4% in March, which is in line with the expectations of experts. The number of applications for unemployment benefits in the UK in April increased by 19.4 thousand, while expectations of growth by 7.5 thousand. The unemployment rate in the UK in March is 4.6%, while the forecast is 4.7%. The consumer price index in the euro-zone in March rose by 0.4% compared to the previous month, which is in line with analysts’ forecasts.
EURUSD: Quotes of the EURUSD currency pair continue to grow, after the publication of positive data on consumer prices in the euro-zone. The MACD indicator is rising after crossing the zero line giving a bullish signal. Moving averages indicate a bullish trend. After the breakdown and consolidation of quotations above the yesterday’s local maximum of 1.1096, the bulls may continue their upward movement in the direction of 1.1299.
GBPUSD: The GBPUSD currency pair continued to show bullish trends after reporting a decrease in unemployment in the UK. The MACD indicator is moving along the zero line without giving clear signals. Moving averages indicate a bullish trend. In this situation, we can expect a continuation of the upward movement in the direction of the level of 1.2988.
USDCHF: The USDCHF currency pair continues to decline, amid a general weakening of the US dollar caused by weak economic data and increased political uncertainty. The MACD indicator goes down after crossing the zero line giving a bearish signal. Moving averages indicate a bearish trend. As a result of the decline, the quotes worked out a level of 0.9813, in the case of a breakdown and consolidation below which we can expect a further decline in the pair to work out a round level of 0.9700.
EUR / JPY: The EUR / JPY currency pair resumed its decline amid growing demand for safe-haven assets. The MACD indicator drops below the zero line, thus indicating the return of bears. Moving averages indicate a bullish trend. After the breakdown and consolidation of quotations below the level of yesterday’s daily candlestick, we can expect a continuation of decline towards 122.95.