Yesterday, USD strengthened against all other major currencies.
The U.S. flash PMI data released yesterday indicated a slight improvement in the manufacturing and services sectors.
-Flash Manufacturing PMI (Actual: 39.8, Forecast: 39.3, Previous: 36.1 revised from 36.9)
-Flash Services PMI (Actual: 36.9, Forecast: 32.6, Previous: 26.7 revised from 27.0)
U.S. banks will be closed next Monday in observance of Memorial Day. Expect lower trading volatility and volume during the U.S. market session.
NZD/USD Outlook (22 May 2020)
Overall, NZD/USD is ranging across. Recently, NZD/USD has been moving around the resistance level of 0.61200.
Earlier today, Chinese Premier Li said that the government will not set a GDP target for 2020 due to global uncertainties caused by the COVID-19 pandemic. Also, China reported a rise of 6.1% in GDP last year, its slowest pace in almost three decades. As a result, NZD reacted negatively towards this announcement.
Currently, NZD/USD is testing the resistance level of 0.61200 and the next support level is at 0.59400.
Look for selling opportunities of NZD/USD.
AUD/USD Outlook (22 May 2020)
Overall, AUD/USD is trending upwards. Recently, AUD/USD moved lower into the support level of 0.65500.
Earlier today, Chinese Premier Li said that the government will not set a GDP target for 2020 due to global uncertainties caused by the COVID-19 pandemic. Also, China reported a rise of 6.1% in GDP last year, its slowest pace in almost three decades. As a result, AUD reacted negatively towards this announcement.
Currently, AUD/USD is testing the support level of 0.65500 and the next resistance level is at 0.66800.
Look for selling opportunities of AUD/USD if it breaks the support level of 0.65500.
USD/JPY Outlook (22 May 2020)
Overall, USD/JPY is ranging across. Recently USD/JPY has been ranging around the resistance level of 107.800.
During the unscheduled monetary policy meeting earlier today, the Bank of Japan (BoJ) held interest rates unchanged at -0.10%. The central bank has introduced a new fund-provisioning measure to further support financing mainly of small and medium-sized firms. This measure will provide funds to eligible counterparties against pooled collateral for up to 1 year at the loan rate of 0%.
The intended press conference after the meeting was cancelled.
Currently, USD/JPY is bouncing off the resistance level of 107.800 and the next support level is at 106.200.
Look for selling opportunities of USD/JPY.
EUR/USD Outlook (22 May 2020)
Overall, EUR/USD is ranging across. Recently, EUR/USD rejected the resistance level of 1.09700.
The flash PMI data for France, Germany and the eurozone released yesterday indicated slight improvement in business activities although business sectors are still in contraction.
-French Flash Services PMI (Actual: 29.4, Forecast: 27.9, Previous: 10.2 revised from 10.4)
-French Flash Manufacturing PMI (Actual: 40.3, Forecast: 36.0, Previous: 31.5)
-Germany Flash Services PMI (Actual: 31.4, Forecast: 26.3, Previous: 16.2 revised from 15.9)
-Germany Flash Manufacturing PMI (Actual: 36.8, Forecast: 39.3, Previous: 34.5 revised from 34.3)
-Eurozone Flash Services PMI (Actual: 28.7, Forecast: 25.0, Previous: 12.0 revised from 11.7)
-Eurozone Flash Manufacturing PMI (Actual: 39.5, Forecast: 38.0, Previous: 33.4 revised from 33.6)
EUR/USD’s next support level is at 1.07800 and the next resistance level is at 1.09700.
Look for selling opportunities of EUR/USD.
GBP/USD Outlook (22 May 2020)
Overall, GBP/USD is trending downwards. Recently, GBP/USD has been moving around the resistance level of 1.22400.
The UK flash PMI data released yesterday indicated a slight recovery in the UK manufacturing and services sector in April. Nonetheless, both sectors are still in contraction.
-Flash Manufacturing PMI (Actual: 40.6, Forecast: 35.1, Previous: 32.6 revised from 32.9)
-Flash Services PMI (Actual: 27.8, Forecast: 24.1, Previous: 13.4 revised from 12.3)
The UK retail sales m/m data (Forecast: -15.8%, Previous: -5.1%) will be released later at 1400 (SGT).
Retail sales in April is expected to decline three times the amount back in March. If the released result is worse than or as forecasted, GBP may weaken.
UK banks will be closed in observance of the Spring Bank Holiday. Expect lower trading volatility and volume during the London market session.
Currently, GBP/USD is bouncing off the resistance level of 1.22400 and the next support level is at 1.20800.
Look for selling opportunities of GBP/USD.
USD/CAD Outlook (22 May 2020)
Overall, USD/CAD is ranging across. Recently, USD/CAD moved higher to the key level of 1.40.
The Canadian retail sales data will be released later at 2030 (SGT).
-Core Retail Sales m/m (Forecast: -4.8%, Previous: 0.0%)
-Retail Sales m/m (Forecast: -10.3%, Previous: 0.3%)
Retail sales in April is expected to decline in April from the almost neutral level back in March. If the released data are worse than or as forecasted, the Canadian dollar may weaken.
USD/CAD’s next support level is at 1.38750 and the next resistance level is at 1.41300.
Look for buying opportunities of USD/CAD.
