Trading plan for June 2
The US dollar index is trading in a narrow range on Monday. Data released today show US personal spending remained weak in April, while the inflationary pressures remain muted. PCE price index recorded its smallest gain since late 2009 on an annual basis (+1,2%). Disappointing data suggests the Fed won’t be in a hurry to raise interest rates. Watch the US factory orders and the FOMC Member Brainard speech tomorrow.
EUR/USD remains supported by the 1.0900 mark. Inflation in Germany pushed higher in May with consumer prices rising by 0.7% year-on-year. Manufacturing PMI indices also came out strong. However, euro remains under bearish pressure as the Greek question remains unsolved. We’ll be watching the flash May CPI tomorrow – forecasts are upbeat here.
GBP/USD extends the decline on Monday, testing the 1.5200 mark to the downside. UK Manufacturing PMI disappointed the market (52.00 versus 52.50 expected). Watch the Construction PMI tomorrow (forecast 55.1 versus prior 54.2).
AUD/USD consolidates around 0.7650. RBA will hold its monetary policy meeting tomorrow – no material changes in policy are expected. The pair is expected to slip towards the 0.7550 support even on a neutral informational background. Resistance lies at 0.7680.