News & Analysis

European Round-Up: Tuesday 14th May

May 15, 2019

Economic News Releases

  • EU – Harmonized Index of Consumer Prices (Apr) at 1% vs 2.1% forecast
  • UK – ILO Unemployment Rate (Mar) at 3.8% vs 3.9% forecast
  • UK – Average Earnings Including Bonus (Mar) at 3.2% vs 3.4% forecast
  • UK – Average Earnings Excluding Bonus (Mar) at 3.3% vs 3.3% forecast
  • UK – Claimant Count Change (Apr) at 24.7K vs 24.2K forecast
  • EU – ZEW Survey Economic Sentiment (May) at -2.1 vs 5.0 forecast
  • EU – ZEW Survey Current Situation (May) at 8.2 vs 7.5 forecast
  • EU – Industrial Production MoM (Mar) at -0.3% vs -0.3% forecast

To keep up to date with the upcoming economic events click here for our Economic Calendar.

Forex

  • US Dollar

A slight rebound today after the softer sentiment we have seen for the U.S. Dollar today over the past couple of days. This is primarily being driven by President Trump who has eased the worries over the US-China trade war, tweeting out earlier “China will be pumping money into their system and probably reducing interest rates, as always, in order to make up for the business they are, and will be, losing. If the Federal Reserve ever did a ‘match,’ it would be game over, we win! In any event, China wants a deal!”, this has helped to return some investor confidence in the Dollar and saw it push higher. The move aided as well by some softer data coming out of both the U.K. and the EU.

On the technical front there isn’t too much to look at with the Dollar Index, we are still down from the highs set at the end of April but we haven’t made a lower low, so for the time being the sentiment remains to the upside, but the trade war and the threat of tariffs being imposed on both side will definitely be weighing heavily on the Dollar and could see dramatic moves to the downside, should the deal talks fall apart.

US DOLLAR – 4hr

  • Pound Sterling

Another day of declines for Sterling as the pound falls 0.36% on the day to a low of 1.2909, the lowest level since April 26th as UK data misses estimates and the dollar getting a boost on trade war tensions easing somewhat.

On the technical front, after pushing through the support level that we have seen holding Sterling up, there was little to catch the price until we came close the 1.29 handle, which is where the decline has taken a bit of a pause.

GBPUSD – 4 Hour

Forex Majors Summary

 

Commodities 

After a hefty decline in late trading yesterday, Oil is seeing a bit of a recovery from the lows, on the back of Saudi Arabia reporting drone attacks on pumping stations, another escalation in the Middle East tensions after tankers were hit by sabotage over the weekend. On the back of this, we are currently seeing Oil trading up $0.83 a barrel or +1.36%.

As trade war tensions ease we’re seeing the metals markets come off a little bit as investor confidence in the greenback picks we are seeing those investors cycle out of the safe haven assets. With Gold currently down $5.54 an ounce or -0.43% and Silver, on the other hand, is just in the green, up $0.03 an ounce on +0.22% on the day.

USOUSD – Daily

Indices

A positive day across the board for European Indices, which have all opened positive and then continued that trend trading higher throughout the day, all finishing up close to 1% on the day. The FTSE one of the best performers pulled higher by the two highest weighted sectors, Financials and Energy, both heavily in the green.

A similar sentiment in the U.S. for Indices, all seeing a rebound from the risk off sentiment we have been seeing recently, as the trade war tensions ease, also being pulled higher by the European Indices.

 

Cryptocurrencies

Another positive day in the cryptocurrency market, with Bitcoin breaching the $8,000 mark despite then dropping below that level. Currently, all of the cryptocurrencies are sitting at the top end of their 30-day trading range. We took a look XRP in our Chart of the day, take a look here -> COTD – XRP

For the latest Chart of the Day by our click here.

By Alex Simcock
 @Alex_GoMarkets

This article is written by a GO Markets Analyst and is based on their independent analysis. They remain fully responsible for the views expressed as well as any remaining error or omissions. Trading Forex and Derivatives carries a high level of risk.

Sources: GO Markets MetaTrader 5, Datawrapper, Tradingview, CoinMarketCap, Bloomberg, Twitter

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