U.S. Events Impacting Markets

Many events taking place in the U.S. today and are much likely to affect the U.S. dollar and U.S. assets. The currency was seen higher ahead of U.S. data today. The ADP Nonfarm Employment Change report for May is due at 12:15 GMT while the U.S. ISM Manufacturing Purchasing Managers Index (PMI) for May will be presented at 14:00 GMT. The U.S. Energy Information Administration (EIA) will provide the weekly Crude Oil Inventories at 15:00 GMT.

source: Investing.com, CNBC

Elon Musk, the co-founder, CEO, and product architect of Tesla Inc. threatened to leave the White House advisory councils if Donald Trump drops the Paris climate accord. The Paris Agreement is signed by many countries who agree to combat greenhouse gas emissions mitigation. Trump tweeted that he will announce his decision on this deal “over the next few days.” Meanwhile, Germany’s Manufacturing PMI for May is due at 07:55 GMT on Thursday.

China’s Caixin Manufacturing Purchasing Managers Index (PMI) report for May, which was released earlier at 01:45 GMT, depicted a decline of 49.6 percent and the Shanghai Composite index was also seen weakened after the data was released. U.K. will also present its Manufacturing PMI for May at 08:30 GMT today and it is advisable to check trends of the Pound and U.K. assets in this aspect.

Technical Analysis

GBP/USD

GBP/USD

The GBP/USD pair recorded several momentary jumps on Wednesday, starting from 09:00 UTC at $1.27812 to reach its highest level for the day at $1.29113 by 14:00 UTC. Afterwards, it kept fluctuating on the foreign exchange market till the end of the session at 23:00 UTC. Today, it started falling as from 04:00 UTC and may fall further through 10:00 UTC, and fluctuate later, the asset is available on the Long Term Trading tool today.

DXY

DXY

Yesterday, the dollar index recorded a huge set of pullbacks as it started tumbling as from 09:00 UTC at 97.42 points to reach its weakest level at 96.90 points by 14:00 UTC. This index was seen much volatile in early trading hours and started consolidating as from 02:00 UTC. Around 04:00 UTC at the 96.98 level, the asset started picking up some heights. It may however fall gradually through the day.

SPX500

SPX500

Wall Street indices closed lower yesterday, with the S&P 500 at 0.05 percent down as U.S. Financials fell by 0.8 percent on concerns that inflation was not increasing fast enough. As such, the index recorded a shooting star as from 13:00 UTC at 2416.4 points to close at 2406.6 points, the same hour. The asset was seen much volatile in the morning trading hours and may maintain this trend through today.

Things to watch on the market

Tip 1

The EUR/USD and the USD/JPY pairs are available for trade on the Option Builder tool today. Other U.S. currencies and Wall Street indices can also be traded if the dollar continues to gain momentum after these data releases.

 

Tip 2

Investors can consider Tesla Motors stocks when they are made available for trade as prices are expected to change as the company reports its earnings report. Currency pairs such as the EUR/AUD, EUR/GBP and the EUR/JPY are available on our trading platform.

 

Tip 3

The GBP/USD and the GBP/CAD can be traded, along with the FTSE 100 index today.