Forex Top Team

GBP/USD (British Pound/US Dollar) Strong Buy: Currency in Focus and Technical Analysis (15-Minute Chart) – May 23, 2024

EUR/USD (Euro/US Dollar) Sell

EUR/USD is showing sideways movement around 1.0830. After yesterday’s decline, the euro is attempting to recover its position. The much-anticipated minutes from the Federal Reserve’s May meeting indicated that it might take longer for inflation to reach the 2.0% target. This dampened expectations for two 25 basis point rate cuts by the Fed this year. Today, attention is on the May business activity statistics from both the Eurozone and the US. Germany’s manufacturing PMI rose from 42.5 to 45.4, and the services PMI increased from 53.2 to 53.9.

GBP/USD (British Pound/US Dollar) Strong Buy

GBP/USD is showing a short-term upward trend, testing around 1.2530. Yesterday’s UK inflation data showed the April Consumer Price Index (CPI) decreased from 3.2% to 2.3% year-on-year, and from 0.6% to 0.3% month-on-month. This reduces the likelihood of a rate cut by the Bank of England next month. Today, business activity statistics for May from the UK and the US will be released.

AUD/USD (Australian Dollar/US Dollar) Sell

AUD/USD is testing around 0.6630, attempting to recover from yesterday’s sharp decline. Australia’s Q1 retail sales exceeded expectations, increasing by 0.5%, but business activity data showed the manufacturing PMI remained flat at 49.6, and the services PMI decreased from 53.6 to 53.1. Business activity data from the US is expected to be released today.

USD/JPY (US Dollar/Japanese Yen) Buy

USD/JPY is testing around 156.75, evaluating Japan’s business activity data. Jibun Bank’s manufacturing PMI rose from 49.6 to 50.5, but the trade balance was worse than expected, with a deficit of -462.5 billion yen. Attention is on the May business activity statistics from the US.

XAU/USD (Gold/US Dollar) Sell

XAU/USD is testing around 2370.00, continuing the bearish momentum from yesterday. The Fed minutes indicated it might take longer for inflation to reach the 2.0% target, with some officials suggesting the possibility of further monetary tightening. Today, the focus is on the May business activity statistics and the April new home sales data from the US.

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