The greenback is dominating right now’s value motion!

Will it result in GBP/USD breaking a key short-term help zone?

Earlier than shifting on, ICYMI, I’ve listed the potential financial catalysts that you should be careful for this week. Test them out earlier than you place your first trades right now!

And now for the headlines that rocked the markets within the final buying and selling periods:

Contemporary Market Headlines & Financial Knowledge:

After final weekend’s OPEC+ assembly, Saudi Arabia introduced a voluntary addition of 1 million-barrel-per-day manufacturing minimize, whereas different voluntary cuts expiring in 2023 might be prolonged till the tip of 2024

Melbourne Institute inflation gauge jumped from 0.2% to 0.9% in Could

Australia’s firm working earnings up by 0.5% in Q1 2023, decrease than the anticipated 1.5% and This fall’s 12.7% enhance

China’s Caixin companies PMI improved from 56.4 to 57.1 in Could (vs. 55.2 anticipated) and steered continued post-lockdown restoration

Worth Motion Information

Overlay of USD Pairs 15-min

Asian session merchants have seen a comparatively busy information calendar right now however the markets nonetheless largely continued Friday’s tendencies.

That’s, the U.S. greenback continued to realize in opposition to most of its counterparts as Asian session warriors caught as much as Friday’s robust NFP report and the elevated possibilities of a Fed price hike in June.

To date, the Buck is simply weaker in opposition to the Canadian greenback after Saudi Arabia’s shock output minimize. It’s additionally weaker in opposition to the Australian greenback after China printed a better-than-expected Caixin companies PMI.

Spain, Italian, French, German, and Eurozone companies PMIs due between 7:15 – 7:55 am GMT
Eurozone PPI at 9:00 am GMT
ECB President Lagarde to present a speech at 1:00 pm GMT
U.S. ISM companies PMI at 2:00 pm GMT
U.S. manufacturing unit orders at 2:00 pm GMT
U.Okay. BRC retail gross sales monitor at 11:01 pm GMT
Japan’s money earnings and family spending at 11:30 pm GMT
RBA’s financial coverage assertion at 4:30 am GMT (Jun 6)

Use our new Forex Warmth Map to shortly see a visible overview of the foreign exchange market’s value motion! 🔥 🗺️

GBP/USD 15-min Foreign exchange Chart

Cable is testing a key help!

As you’ll be able to see, early greenback demand has dragged GBP/USD to the S1 (1.2410) of right now’s Normal Pivot Factors.

Curiously, S1 traces up with a pattern line help that’s been round since late Could.

Can GBP/USD recuperate its lowkey uptrend within the subsequent buying and selling periods?

The help traces and the bullish divergence on the 15-minute chart is actually supporting a bounce.

The bearish SMA crossover, nevertheless, ought to no less than make GBP bulls assume twice.

Let’s see if merchants within the European and U.S. periods prolong the Asian session’s USD-friendly atmosphere.

Concentrate on the Fed’s June price hike might bust GBP/USD from its larger lows pattern and drag the pair to a subsequent help zone (probably S2 close to 1.2370).

But when merchants undertake a risk-friendly perspective at the beginning of the week, then GBP/USD might prolong its short-term uptrend and retest earlier areas of curiosity like 1.2450 or 1.2480.

What do you assume? Which method will GBP/USD go right now?