The US dollar was bearish against most of its major pairs on Tuesday, with the exception of CAD and GBP. On the economic data breach, the National Federation of Independent Business’s Small Business Optimism Index fell to 90.9 a month in April (83.0 expected) from 96.4 in March, a level last seen in 2013. The Bureau of Labor Statistic’s Consumer The Price Index fell 0.8% on the month of April (as expected) from -0.4% in March, marking a low last seen in 2008. The monthly budget jumped to $ 737.9 billion in the month of April ($ 737.0 billion) dollars expected), from $ 160.3 billion in March, marking a post Monthly Budget Deficit.
On Wednesday, the Mortgage Bank Association’s mortgage application data is expected for the week ending May 8. Finally, final demand for producer price indices for April is expected to fall 0.5% per month from -0.2% in March.
Euro was bullish against all its pairs. In Europe, Banque de France’s industrial business climate index came out at 48 in April, compared to 52 in March (revised from 51) and 40 expected by economists. The institution reported that economic activity in France fell by 27% in April, which is a slight improvement on the decrease observed in March.
The Australian dollar was bearish against most of its largest pairs with the exception of CAD, GBP and USD.
GBP / USD fell 60 pips to 1.2275 in Tuesday’s trade, making it one of the biggest movers. Looking at key levels to look at. Resistance can be seen at 1.2315 level with initial support of 1.2245. The preferred technical scenario is bearish against 1.222 as long as 1.2315 resistance has not been affected.