A bullish trend condition in GBPUSD remains intact following recent gains and a short-term pullback would be considered corrective. The recent breach of 1.2634, the May 3 high, confirmed a resumption of the current bull cycle and this opened 1.2754, 76.4% of the Mar 8 - Apr 22 bear leg. 1.2754 was pierced Wednesday, a clear break would expose 1.2803, the Mar 21 high. Initial firm support to watch lies at 1.2596, the 50-day EMA.
Find more articles and bullets on these widgets:
Date | Time | Country | Event |
24-Apr | 835 | EU | ECB's Cipollone at ECB retail payments conference |
24-Apr | 900 | IT | ISTAT Business/Consumer Confidence |
24-Apr | 900 | DE | IFO Business Climate Index |
24-Apr | 1010 | EU | ECB's Cipollone at ECB Retail Payments Conference |
24-Apr | 1400 | BE | BNB Business Sentiment |
24-Apr | 1500 | EU | ECB's Schnabel remarks at '"Frankfurt liest ein Buch" |
25-Apr | 700 | DE | GFK Consumer Climate |
25-Apr | 745 | FR | Manufacturing Sentiment |
25-Apr | 800 | ES | PPI |
25-Apr | 800 | EU | ECB's Schnabel Speech for 'ChaMP' |
26-Apr | 745 | FR | Consumer Sentiment |
26-Apr | 900 | EU | M3 |
26-Apr | 900 | EU | ECB Consumer Expectations Survey |
26-Apr | 900 | EU | ECB's De Guindos at Academia Europea Leadership |
29-Apr | 800 | ES | HICP (p) |
29-Apr | 900 | DE | North Rhine Westphalia/ Bavaria CPI |
29-Apr | 1300 | DE | HICP (p) |
Eurostoxx 50 futures traded higher Tuesday, extending the recovery from 4762.00, the Apr 19 low. The contract has cleared the 20-day EMA and breached resistance at 4990.00, the Apr 15 high. This highlights a stronger reversal and signals the end of the correction between Apr 2 - 19. A continuation higher would expose the bull trigger at 5079.00, the Apr 2 high. Key support lies at 4762.00.
After the April release of the IMF’s Fiscal Monitor, MNI has published a Macro Deep Dive on the projected global tightening. In terms of Australia-NZ, NZ’s fiscal position is not as robust as Australia’s with both Treasuries forecasting a 2pp difference in the budget deficit for the current financial year. The IMF’s forecasts in the April Fiscal Monitor are consistent with this. There is considerable uncertainty regarding the fiscal outlook in both countries, as budgets will be announced on May 14 for Australia and May 30 for NZ.