EURUSD continues recovery and GBPUSD broke the May low
- During the Asian trading session, the euro gained support at the 1.04000 level.
- Yesterday, the pair broke the May low to 1.21600 and formed a new lower low at the 1.21000 level.
- The unemployment rate in Great Britain increased in three months until April.
- Consumer price inflation in Germany accelerated to a new record level in May.
EURUSD chart analysis
During the Asian trading session, the euro gained support at the 1.04000 level. Pair has managed to recover to 1.04800 level, and now we have a new retreat towards the previous low. If the pressure on the euro increases, the pair could drop to the 1.03475 level by May’s support. Our potential lower target is 1.03000 level. For the bullish option, we need a new positive consolidation and a jump above the 1.05000 level. After that, with the continuation of the bullish pulse, the pair could continue towards higher targets. Our potential targets are 1.05500 and 1.06000 levels. The dollar continues to dominate, along with 10-year bond yield growth.
GBPUSD chart analysis
Yesterday, the pair broke the May low to 1.21600 and formed a new lower low at the 1.21000 level. The pound recovered during the Asian session and stopped at the 1.22000 level. After that, we have a new pullback and another test of the June low at 1.21000. It could very easily be a break below, and our next potential target is a psychological 1,20000 level. Today’s economic data from the British economy were also catastrophic. We need a new positive and a return above the 1.22000 level for the bullish option. In this way, the pound would form a bottom at 1.21000 level with additional support at 1.22000 level. after that, we could see a recovery to the next zone at 1.23000 level. Potential targets above are at 1.23500, 1.24000, and 1.24500 levels.,
Market overview
UK Jobless Rate
The unemployment rate in Great Britain increased in three months until April, the Office for National Statistics announced on Tuesday. The unemployment rate rose 0.2 percentage points to 3.8% in the three months to April, remaining above the expected 3.6%. In the three months to May, the number of vacancies rose to a new record of 1,300,000. However, the ONS said the vacancy growth rate continued to slow. Average earnings with bonuses rose 6.8% in the three months to April from last year, slower than the economists’ forecast of 7.6%.
Germany Inflation hits new record high
Consumer price inflation in Germany accelerated to a new record level in May, as initially estimated, spurred by higher energy prices, final data from Destatis showed on Tuesday. Consumer price inflation rose to 7.9% in May from 7.4% in April. Higher inflation was last recorded in the winter of 1973/74. “The inflation rate has thus reached the highest level in history for the third month in a row since the reunification of Germany,” said Till, the president of Destatis. On a monthly basis, total consumer prices rose by 0.9%, according to a preliminary estimate, after rising by 0.8% in April.
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