INTERNATIONAL CURRENCY BUZZ
Forex -Dollar On Track to Snap 4 Week Winning Streak as EUR/USD Gains
Forex -EUR/USD consolidates recovery from 4 month lows
Forex -GBP/USD trims daily gains, holds in weekly range
The EUR/USD pair is rising on Friday for the second day in a row but it was unable to extend gains during the American session as the US Dollar recovered strength on the back of rising US yields. The euro peaked on Friday at 1.1969, the highest since Monday. The area around 1.1970 capped the upside. EUR/USD is about to end the week, steady moving in a range between 1.1930 and 1.1960, marginally below the level it closed last week. EUR/USD recovered ground after falling on Wednesday to 1.1821, the lowest since December.The weekly close far from the lows could signal some consolidation ahead. Some bearish pressure is still seen. The weekly chart is about to form a doji, after rebounding at the 20 week moving average.Next week,key data from the Euro zone is due, including GDP, NEW survey and CPI. In the US, retail sales on Tuesday area likely to gain attraction.
The GBP/USD failed again to break above 1.3600 and retreated back below 1.3550 amid a recovery of the US dollar across the board. Recently dropped to 1.3531 and it was hovering around 1.3540. The greenback trimmed losses the board during the American session and extended gains against most of emerging market currencies. US Dollar Index Futures rose from 92.19 to 92.42 supported by a bounce in US yields that turned higher.Regarding data, the US Preliminary Consumer Sentiment Index (University of Michigan) for May came in at 98.8, slightly above the 98.5 expected by market analysts. Cable is still modestly higher for the day but the momentum eased. It continues to move sideways as it has been the case since last week. GBP/USD continues to move in a consolidation range between 1.3500 and 1.3600. Today it is headed toward the sixth daily close between 1.3515 and 1.3550.