The parliamentary fight seems to go between the David Cameron’s Conservative Party and Ed Miliband’s Labour Party. Recent polls have shown that the majority is owned by David Camerons’s party, so the sterling pound rallied against other major currencies. GBPUSD is currently overcoming the 1.5500 level without problems, while the next resistance levels are located at 1.5560 and 1.5600. On the other side, the active support levels are 1.5300 and 1.5250. The EURGBP is resuming the descending trend possibly targeting the 0.7120 and 0.7100 support zone.
EURUSD has recently followed a descending tendency as the dollar enjoyed the result of the Unemployment Claims (265k) and market participants improved their view about the US Q2 data. The Euro is as well maintaining its strength considering the confidence manifested from Spain relative to an agreement with Greece. The Greek state has recently decided to elect the Oxford University-educated economist, Euclid Tsakalotos, as the coordinator of the bailout negotiations. Simultaneously, Greece continues to defy its creditors refusing to cut pensions or ease layoffs.
The American dollar has been bought in yesterday’s session as the 265k Unemployment report seems to align with a falling unemployment rate, and consequently with a possible rate lift. Also, the dollar’s appreciation episode contained an anticipatory component which may relate to the today’s NFP. The estimated number for today (NFP) is currently posted above the last month’s report, but considering the first quarter results, the data may easily disappoint. The technical analysis is telling that the daily graph on EURUSD has formed a bearish pattern named Dark Cloud Cover, so the support level at 1.1100 and the resistance level at 1.1400 remain active.
The Bank of Japan Monetary Policy Meeting Minutes has shown concern about the private consumption that remained weak. In the long term, expectations on inflation appear to be rising, while in the short term, the annual CPI might turn negative depending on energy price moves.
RBA Monetary Policy Statement revealed concerns about the level of the GDP in 2015 and 2016, while highlighting the need of more fiscal action this year. China’s Trade balance also decreased to 34.1 billion, with exports declining in April and imports slumping. Both the Australian and New Zeeland dollar resumed the descending tendency, while for today the American dollar may temporarily gain the total control.
The price of oil enrolled in a downward position in yesterday’s session as the oversupply concerns are moving the price. Iran is waiting for sanctions to be lifted in order to flood the global oil market, while an OPEC delegate confirmed that in June the group may focus on achieving market share and in any case won’t cut production.
