Following the week of falling dollar after International Monetary Fund (IMF) cut of the US GDP outlook and set of negative data from the United States from industrial, consumer and labor market, Sterling corrected markedly from 2010 lows and is approaching to psychological $1.5000.
Now the market turns its attention to unemployment data to come out at 8:30am GMT together with jobless claims. As the monetary policy watches labor market with higher attention together with inflation, any positive or negative change may be reflected by the UK currency.
Moreover, later in the day, inflation data are about to come from the United States, when Bureau of Labor Statistics will publish Consumer Price Index (CPI) on monthly and yearly basis. As it is one of the mostly watched indicators by the Federal Reserve as well as market, we may expect any considerable change to have correlating impact on the US dollar performance.
From the technical point of view, we are at a resistance level of $1.4970 and the currency will touch the psychological $1.5000 probably ahead of labor market data. In case of positive developemnt for the UK currency (and negative data in the US), we may see hike above the $1.50 level, with TP for bulls at $1.5094, while in case of negative UK data and supportive US CPI we could expect the currency pair to drop to $1.4821, or further to $1.4716.
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