European election results and global growth data to set the trading tone

During the upcoming trading week traders and investors look to the results of the European elections and global growth data for direction. The British pound and the euro currency are both expected to remain active as the results of the EU election for twenty-eight member states are announced. Global growth data is also is heavily in focus as we see GDP data from the Swiss, Brazilian, United States, Canadian and eurozone economy.

This week the Bank of Canada deciding on interest rates and we see the release of important monthly and annual Manufacturing data from the Chinese economy. The United States economy releases key Consumer Confidence and Core PCE data inflation data, which takes on extra importance after the release of much weaker than expected US data last week.

Monday 27th May, EUR EU election results

Traders and investors will react to the results of the European election, which cover the entire twenty-eight member states that make up the eurozone economy. A rise in populists party membership inside the European Parliament will be taken as bearish for the EURUSD pair, while a better than expected result for established political parties will be taken as bullish for the EURUSD pair.

• The EURUSD pair is only bearish while trading below the 1.1190 level, key support is found at the 1.1165 and 1.1100 levels.
• If the EURUSD pair moves above the 1.1190 level, buyers will likely test towards the 1.1265 and 1.1300 resistance levels.

Tuesday 28th May, USD US Consumer Confidence

The US Consumer Confidence Index released by the US Conference Board and measures the level of consumer confidence in economic activity. The US Conference Board index has the largest pooling sample of any U.S. measure of consumer confidence, making the Consumer Confidence Index a key barometer of the health of the U.S. economy from the perspective of the consumer.

• The GBPUSD pair is bearish while trading below the 1.2756 level, key support is found at the 1.2600 and 1.2500 levels.
• If the GBPUSD pair moves above the 1.2756, buyers may test the 1.2810 and 1.2900 resistance levels.

Wednesday 29th May,  CAD Bank of Canada Rate Decision

The Bank of Canada Interest Rate Decision is a decision of the governing council members on where to set the rate. Market consensus has formed that the Bank of Canada will not hike rates this week. After the interest rate decision, the central bank releases a monetary policy statement that contains the BOC’s collective perspective on the economy and also ideas about future monetary policy.

• The USDCAD pair is only bullish while trading above the 1.3340 level, further upside towards 1.3500 and 1.3680 levels would then seem possible.
• If the USDCAD pair trades below the 1.3340 level, sellers are likely to test the 1.3280 and 1.3200 support levels.

Thursday 30th May, USD GDP Price Index

The US Gross Domestic Product Price Index is released by the Bureau of Economic Analysis and the Department of Commerce. The US GDP Price Index measures the changes in the price of all goods and services included in gross domestic product. The GDP Price Index includes all products accounted for by GDP inside the United States economy, however, it does not include the effects of changes in United States import prices.

• The USDCHF pair is only bullish while trading above the 1.0050 level, further upside towards the 1.0100 and 1.0190 resistance levels seems possible.
• If the USDCHF pair trades below the 1.0050 level, sellers are likely to test towards the 0.9950 and 0.9910 support levels.

Friday 31st May, CNY Chinese Manufacturing PMI

The Chinese Manufacturing Purchasing Managers Index is released by the Chinese Federation of Logistics and Purchasing. China’s PMI and is an economic indicator that measures the activity level of purchasing managers in the manufacturing sector each month. The May Chinese manufacturing PMI is expected to weaken from the previous month’s figure due to an ongoing tightening in global trade and the trade tariffs imposed on selected Chinese goods entering into the United States from the Trump administration.

• The AUDUSD pair is only bearish while trading below the 0.7000 level, further downside towards the 0.6900 and 0.6860 levels seems likely.
• If the AUDUSD pair trades above the 0.7000 level, buyers are likely to test towards the 0.7080 and 0.7130 resistance levels.