GBP/NZD is hitting the highest of a key short-term resistance zone!

Will at the moment’s U.Okay. GDP launch prolong the pair’s downtrend?

Earlier than shifting on, ICYMI, yesterday’s watchlist checked out GBP/USD testing a variety help forward of the BOE assertion. Remember to take a look at if it’s nonetheless a superb play!

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

Contemporary Market Headlines & Financial Information:

Financial institution of England raised the Financial institution Charge to 4.5% from 4.25% on Thursday as anticipated; Governor Andrew Bailey promised that the BOE “keep the course” as inflation falls extra slowly than anticipated

European Central Financial institution President Lagarde restated on Wednesday that there’s extra to do to struggle inflation; wage pressures is being intently watched by the ECB

U.S. PPI for April 2023 was 0.2% m/m (0.1% m/m forecast) vs. -0.4% m/m earlier; Core PPI rose by 0.2% m/m as anticipated vs. 0.0% m/m earlier

FOMC voting member Kashkari stated on Thursday that costs stay too scorching, signaling excessive rates of interest for an prolonged time period

BusinessNZ manufacturing survey inched up from 48.1 to 49.1 in April however nonetheless decrease than the 53.0 long-term common

New Zealand’s customer arrivals up by 805% y/y in March however down by 2.9% from February and continues to be solely 68% of the pre-COVID numbers in March 2019

Crude oil costs larger after the U.S. signaled its plans to refill the Strategic Petroleum Reserve after June

Worth Motion Information

Overlay of NZD Pairs 15-min

There weren’t a number of market-movers through the early Asian session buying and selling nevertheless it appears like merchants picked up on the danger aversion seen through the U.S. session.

See, the Dow and S&P 500 noticed losses yesterday on the again of disappointing U.S. earnings report and the U.S. debt ceiling deadline.

NZD, which dropped sharply at first of U.S. session buying and selling, dipped under its U.S. session lows and made new intraweek lows.

Upcoming Potential Catalysts on the Financial Calendar:

New Zealand’s quarterly inflation expectations at 3:00 am GMT
U.Okay.’s preliminary Q1 GDP at 6:00 am GMT
U.Okay.’s items commerce steadiness at 6:00 am GMT
U.Okay.’s industrial manufacturing at 6:00 am GMT
U.S. preliminary UoM client sentiment at 2:00 pm GMT
U.S. NIESR GDP estimate out through the European session

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GBP/NZD 15-min Foreign exchange Chart by TV

The U.Okay. is printing a preliminary GDP learn in a bit so you recognize we gotta check out British pound pairs!

I’ve my eyes on GBP/NZD, which is flirting with the highest of a descending channel that’s been round all month.

Factor is, the highest of the channel can be across the R2 (1.9940) of at the moment’s Customary Pivot Factors.

Extra importantly, GBP/NZD has already risen by half of its every day common volatility.

Are we taking a look at a short-term reversal over right here?

Markets don’t anticipate the U.Okay.’s quarterly and month-to-month GDPs to trigger a lot ripples particularly after the BOE already shared its upgraded estimates.

So, until we see extra upside surprises, merchants might take cues from the Pivot Factors and prolong GBP/NZD’s short-term downtrend.

I’ll be trying on the 1.9850 Pivot Level mark as potential targets if GBP/NZD reveals indicators of turning decrease.

If the U.Okay.’s GDP numbers print larger than anticipated, then I may also look into buying and selling a possible upside breakout.