GBP/USD has posted

GBP/USD has posted considerable losses in the Monday session. Currently, GBP/USD is trading at 1.2685 down 0.41% on the day. On the release front, British numbers were unexpectedly soft. Monthly GDP dropped 0.4% in April, its second straight decline. There was no relief from Manufacturing Production, which plunged 3.9% in April, much weaker than the forecast of -1.1%. This was the largest decline since June 2002. In the U.S., there are no major events. JOLTS Jobs Orders slowed to 7.45 million, shy of the estimate of 7.50 million. On Tuesday, the U.K. releases wage growth and unemployment rolls, while the U.S. posts Producer Price Index reports.
•1.2615 is providing support
•1.2723  is the next resistance line
•Current range: 1.2615 to 1.2723

EUR/USD

EUR/USD has posted winning sessions for three successive days, and the upward trend has continued on Wednesday. Currently, the pair is trading at 1.1284, up 0.26% on the day. On the release front, German and eurozone services PMIs beat expectations, with scores of 55.4 and 52.9, respectively. Eurozone retail sales dropped 0.4%, its first decline in four months. In the U.S., ADP nonfarm payrolls is expected to drop to 185 thousand in May, after a sparkling gain of 275 thousand in April. ISM Non-Manufacturing PMI is projected to show strong expansion, with an estimate of 55.6. On Thursday, the ECB is expected to maintain its key interest rate at a flat 0.00%. In the U.S., the key event is unemployment claims.

GBP/USD has posted slight gains

GBP/USD has posted slight gains in the Tuesday session. Currently, GBP/USD is trading at 1.2689, up 0.20% on the day. On the fundamentals front, British Construction PMI disappointed, with a score of 48.6, indicating contraction. This missed the estimate of 50.6 points. In the U.S., the sole event was Factory Orders. The indicator declined by 0.8%, above the estimate of -1.0%. This marked the second decline in three months. On Wednesday, the U.K. releases Services PMI.
British PMIs, which are key gauges of the economic activity, dropped into contraction territory in April. Construction PMI fell to 48.6, its third decline in four months. This followed a manufacturing PMI of 49.4, marking the first contraction since July 2016. Manufacturing news from the U.S. also disappointed, as ISM Manufacturing PMI slowed to 52.1, down from 53.0 a month earlier. This was the PMI’s weakest reading since November 2018. Global demand has fallen off due to trade tensions, and unless this situation improves, manufacturing in the U.K and the U.S. could continue to head downwards.
•1.2615 is providing support
•1.2723 is the next resistance line
•Current range: 1.2615 to 1.2723

upcoming trend is to sell EUR/JPY

 Safe-haven currencies are likely to strengthen, led by the Japanese yen because "U.S. growth fears decisively challenge high asset valuations," says Societe Generale. The best way to take advantage of this upcoming trend is to sell EUR/JPY, it says and advises going short at 121 for a target of 115, with a stop loss at 123.50. Moreover, "growth expectations remain the core forex driver, and Japan's 1Q GDP was a positive surprise. A tighter spread between eurozone and Japanese GDP forecasts should directly anchor EUR/JPY." EUR/JPY is last up by 0.4% at 121.40.

GBP/USD 6/3

GBP/USD is trading at 1.2626, up 0.14% on the day. On the release front, there are no major British events. It was a busy day for U.S. fundamentals. The Federal Reserve’s preferred inflation gauge, Core PCE Price Index, improved to 0.2%, matching the forecast. However, personal spending slowed to o.3%, after a strong gain of 0.9% in the previous release. Consumer confidence also softened, dropping from 102 in April to 100 in May. Scalping Strategy Course (DVD + Online) The Federal Reserve continues insist that its stance is neutral with regard to interest rate moves. The Fed has said that the next rate move could be in either direction, but the markets are by no means convinced. The well-respected CME Group has priced in a quarter-point rate cut at 36% in June, and 46% in September. These figures are quite high, given the strength of the U.S. economy, which posted impressive growth of 3.1% in the first quarter. If the ongoing trade war with China continues, U.S. growth could soften, likely raising the odds of a rate cut in the next few months. •1.2615 is fluid. Currently, it is a weak support line •1.2723 is the next resistance line •Current range: 1.2615 to 1.2723