Forex Signals Brief for May 31: EUR/USD Focus Continues with CPI
Rowan Crosby • 2 min read
Markets managed to regain some lost ground Wednesday as fears over the Italian political crisis eased. The EUR/USD, in particular, rebounded strongly, however, we are still not out of the woods by any means, despite the political wrangling.
As our attention turns to Thursday, the Eurozone will once again be in focus when we get a better picture of inflation. CPI is due for release and there will be much attention on the result given some of the headlines we saw last week.
There were reports that suggested the ECB is getting set to wind back QE and will be focusing on it in their upcoming June meeting. One of the key elements the ECB is focused on is lacklustre inflation. If we see a strong reading greater than the forecast 1.6%, then expect to see further EUR/USD upside.
Forex Signals Update
Forex markets saw a big reversal on Wednesday after some of the fear out of Europe eased. The FX Leaders Team walked away with four winning signals from seven trades in what was a good result. The EUR pairs were particularly active and will be again on Thursday.
Gold – Gold has been relatively subdued despite the European saga. Look for more upside here as we still have some fear in the air.
GBP/JPY – The GBP/JPY has pulled back nicely from 145.00 resistance and is continuing the downtrend. Looking for a possible short here.
GBP/USD – Sell the Bounce
The GBP/USD has been in a strong downtrend for a few weeks and we certainly capitalized in it with our long-term signal recently. This was a short-term trade, thanks to the pullback from the USD. We are currently right at resistance so let’s hope this holds up into the European open. The take profit target is at 12,520.