USD Trading Outlook (28-05-2015)

A strong US equity rebound driven by optimism that a Greek deal will take place soon, and a retreat of the USD as a result of this, were the main news yesterday. The same tone is carried on today, as the market is waiting for the release of the many news later during the day.

EURUSD was also boosted from very strong consumer confidence data in Germany yesterday which hit a 14 year high. Same picture is seen in AUDUSD and GBPUSD where both pairs have recovered slightly from their lows. Sentiment remains USD positive though, at least until some news prove otherwise or if some important technical resistances are broken.

USDJPY and USDCAD have been the biggest market movers as so far. USDJPY reached as high as 124.30 – levels not seen since more than 8 years.

Bank of Canada left monetary policy unchanged as widely expected. Tomorrow GDP in Canada will be released which could cause a lot more volatility.

For today, focus will be mostly on Jobless claims data to be released at 12:30 GMT as well as Pending Home Sales data at 14:00 GMT.

Trading Quote of the day: Average up, not down. Add to winners, not losers.