May 13, 2022
EUR/USD: The euro fell against the U.S. dollar on Thursday as global risk aversion over inflation and diminishing economic growth prospects sent investors scrambling into the safe-haven dollar. On the data front, The U.S. The Labor Department said the producer price index for final demand rose 0.5% in April, slower than the 1.6% surge in March, as rising costs of energy products moderated. Pressure on the euro is also exerted by doubts that the ECB will start raising rates this year. The wait-and-see position of the European regulator increases the contrast between the monetary policies of the ECB and the Fed. Immediate support is seen at 1.0350. A breakout below could take the pair towards 1.0300.
SELL STOP 1.0350/TP 1.0300/SL 1.0370
GBP/USD: Sterling dropped to a fresh two-year low versus a strengthening U.S. dollar on Thursday after a slew of economic data pointed to the weakening of the economy. Britain’s economy shrank 0.1% in March after a slump in car sales due to supply-chain problems. Data also showed British employers added staff last month at the weakest rate in more than a year suggesting the labor market might be cooling. Immediate support is seen at 1.2170. A breakout below could take the pair towards 1.2100.
SELL STOP 1.2170/TP 1.2100/SL 1.2190
USD/CAD: The Canadian dollar extended its recent decline against the U.S. dollar on Thursday as investors grew more worried about the global economy and the Bank of Canada played down prospects of interest rates rising by more than half a percentage point in any one move. Meanwhile, Bank of Canada Deputy Governor Toni Gravelle said the Canadian central bank’s policy rate, at 1%, is “too stimulative” given soaring inflation and needs to return to more neutral levels quickly. Today, the Canadian dollar can be supported by rising oil prices – Canada’s most important export item. Immediate support is seen at 1.2950. A breakout below could take the pair towards 1.2900.
SELL STOP 1.2950/TP 1.2900/SL 1.2970