Today the focus is on Japanese stimulus, Tesla Plaid, & fewer jobless claims in the US.
The British Manufacturing Production (MoM) data for April will be released. Forecast: 1.5%. If the data is lower than expected, the GBP could receive negative pressure.
Assets to trade: GBP/USD, GBP/CHF, EUR/GBP
The number of Americans filing new claims for unemployment benefits fell last week to the lowest level in nearly 15 months, while consumer prices increased further in May as the pandemic’s easing grip on the economy continues to boost domestic demand. Affects USD
The European Central Bank maintained an elevated flow of stimulus as expected on Thursday, fearing that any retreat now would accelerate an already worrisome rise in borrowing costs and choke off the fledgling recovery. Affects EUR
The Federal Reserve is publicly committed to keeping interest rates near zero — and no hikes are priced in until late next year at the earliest — official comments about inflationary pressures could become a chorus in months ahead, making tapering a more concrete prospect and likely heightening volatility in global financial markets. Affects USD
Tesla Inc delivered a high-performance “Plaid” version of its Model S on Thursday, aiming to reignite interest in the nearly decade-old sedan and fend off rivals such as Porsche, Mercedes-Benz, and Lucid Motors in the luxury electric vehicle market. Affects Tesla
Japanese Prime Minister Yoshihide Suga is likely to compile another big economic stimulus package before calling a snap election in September. Affects JPY
The USD has been volatile as inflation concerns continue to circle and investors fear the looming tapering by the Fed. While the US economy steams toward normalcy, Japan still lags with concerns around the delayed Olympics and new stimulus trouble with the JPY.
The pair has shown a Three Outside Up pattern, but the uptrend may not be strong enough to break the resistance level around 109.8.
The pair has shown a Three Outside Up pattern, and the uptrend may be strong enough to break the resistance level around 1.2699
The index has shown a Three Outside Up pattern, but the uptrend may not be strong enough to break the resistance level around 34784.85.