GBP/NZD simply broke above a consolidation sample!
Can the pair make new 2023 highs this week?
Or is the pair about to see some severe pullback?
Earlier than shifting on, ICYMI, yesterday’s watchlist checked out EUR/NZD for a possible reversal after the RBNZ’s fee hike. Remember to try if it’s nonetheless a great play!
And now for the headlines that rocked the markets within the final buying and selling periods:
Recent Market Headlines & Financial Knowledge:
BOE Gov. Bailey expressed concern over “sticky” inflation amidst tight labour market
EIA: U.S. crude inventories fell by 12.5 million barrels vs. estimates of an 800K-barrel improve within the week to Could 19
FOMC assembly minutes confirmed that members are “unsure” about how a lot tightening could also be wanted
Germany’s Q1 2023 GDP was revised from 0.0% to -0.3%, placing the financial system in a technical recession after This autumn’s 0.5% decline
Sturdy wage expectations push Germany’s shopper confidence from -25.8 to -24.2, marking the strongest degree since April 2022 and eighth consecutive improve.
Value Motion Information
There weren’t a number of recent catalysts throughout the Asian session, which implies that extra merchants had time to cost in yesterday’s occasions.
That additionally meant extra losses for NZD after the Reserve Financial institution of New Zealand (RBNZ)’s dovish fee hike yesterday.
In the meantime, extra risk-takers jumped ship as an absence of a U.S. debt ceiling deal and Fitch placing U.S. credit score on “damaging” watch received them jittery.
The U.S. greenback nonetheless gained pips towards its main counterparts, however NZD noticed heavier losses throughout the board.
U.Ok.’s CBI realized gross sales at 10:00 am GMT
U.S. preliminary GDP at 12:30 pm GMT
U.S. preliminary GDP value index at 12:30 pm GMT
U.S. preliminary jobless claims at 12:30 pm GMT
U.S. pending residence gross sales at 2:00 pm GMT
Tokyo’s core CPI (y/y) at 11:30 pm GMT
Australia’s retail gross sales at 1:30 am GMT (Could 26)
Use our new Foreign money Warmth Map to shortly see a visible overview of the foreign exchange market’s value motion! 🔥 🗺️
In case you missed it, the combo of RBNZ’s “dovish hike” and a higher-than-expected U.Ok. core CPI received merchants shopping for GBP and promoting NZD yesterday.
The identical themes carried over to as we speak and now GBP/NZD has damaged above a pennant-type consolidation on the 15-minute timeframe.
Can GBP/NZD lengthen its features?
Take word that the pair is nearly on the R1 (2.0400) of as we speak’s Customary Pivot Factors, which traces up with April’s highs close to the extent.
The pair has additionally already risen by about 50 pips greater than half of its 158-pip day by day volatility.
A rejection at 2.0400 opens GBP/NZD to a transfer again to its 2.0300 earlier resistance ranges.
But when merchants don’t let up on shopping for GBP and/or promoting NZD, then GBP/NZD may make new 2023 highs and make a play for February 2022’s highs close to 2.0500.