Cable Dips As UK Looks For Next PM
AETOS Capital Group | May 28, 2019 08:33
EURUSD
The Euro closed lower on Monday, closing at 1.1192(-14 pips) against the greenback. The lack of macroeconomic releases exacerbated the quietness around major pairs, although the greenback ended the day modestly up against most rivals.
Over the weekend, Europe went to the polls to renew its Parliament, and the result was hardly a surprise. The centrist bloc lost the majority, with greens and eurosceptics adding seats, although pro-EU parties held onto roughly two-thirds of the seats.
Activity will resume Tuesday with the European session, as there's also little to take care during the upcoming Asian hours. Germany will publish the June GFK Consumer Confidence Survey, foreseen at 10.4, matching the previous' month reading, while the EU will release the May Economic Sentiment Indicator, also seen steady, at 104.0.
The US session will bring the CB Consumer Confidence Index and the Dallas Fed Manufacturing Business Index for May
EURUSD 4 Hour Chart
In the 4 hours chart shows that the pair was rejected by sellers aligned around a mild-bearish 200 SMA, while it now hovers around a directionless 100 SMA and above a bullish 20 SMA, this last at around 1.1175.
The Momentum indicator in the mentioned chart hovers around its daily highs, lacking directional strength, although the RSI indicator has lost its bullish strength, heading south at around 55, skewing the risk to the downside, particularly if the pair extends its decline below the mentioned 1.1175.
GBPUSD
The cable pair fell to 1.2680(-41 pips) against the greenback. The cable pair remains weak on the back of Brexit uncertainty, and increasing fears about May´s replacement being a Brexiteer, which should signify that the future PM wouldn't hesitate to leave without a deal.
So far, former Foreign Affairs Minister Boris Johnson is the favourite, although Home Office (Interior) Minister Sajid Javid announced he will be running as a candidate to replace Mrs. May. Given that the UK celebrated the Spring Bank Holiday on Monday, it didn't release significant data. During the upcoming European session, the UK will publish April BBA Mortgage Approvals and the Inflation Report Hearings.
GBPUSD 4 Hour Chart
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In the 4 hours chart, the pair hovers around a directionless 20 SMA, while technical indicators eased, the Momentum heading lower above its 100 level, while the RSI stabilized around 44, leaning the scale toward the downside
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