ECB interest rate decisions and U.S. data intensify volatility

Earlier on Thursday, major currency pairs fluctuated in their weekly range. The European Central Bank (ECB) will announce monetary policy decisions, and the U.S. economic calendar will provide data on challenger layoffs in May, the number of first-time unemployment claims per week, and the vifu.netmodity trade gap in April. ECB President Christine Lagarde will speak on the prospects and answer questions in a post-conference press conference. Finally, several Fed policymakers plan to speak in the second half of the day.

The US dollar (USD) is under pressure after disappointing macroeconomic data released on Wednesday. The automated data processing (ADP) report said private sector employment increased by 37,000 in May, well below market expectations of 115,000. In addition, the Institute for Supply Management (ISM) Service Purchasing Managers Index (PMI) fell from 51.6 in April to 49.9 in May. The U.S. dollar index fell more than 0.4% on Wednesday, and entered a consolidation phase early Thursday, closing around 99.00. Meanwhile, U.S. stock index futures fell slightly after major Wall Street indexes closed up and down.

Basic Forex Market Market:

Early Thursday, German data showed that factory orders rose by 0.6% in April. The data follows a 3.4% increase reported in March, better than market expectations for a 1% decline. The market generally expects the ECB to lower its key interest rates by 25 basis points (bps) after its June meeting. In addition to policy statements, the ECB will also release updated employee forecasts. Euro/USD on Thursday Europe stabilized at 1 in early trading.1400 above.

The GBP/USD benefited from selling pressure around the dollar and closed in the upside on Wednesday. Earlier Thursday, the pair fluctuated in a narrow channel around 1.3550.

The US dollar/JPY fell sharply on Wednesday, down nearly 0.9%. The pair corrected higher and traded above 143.00 to start the European session.

AUD/USD stabilized at around 0.6500 after rising nearly 0.5% on Wednesday. Data from China earlier in the day showed that Caixin Services Purchasing Managers Index rose from 50.7 in April to 51.1 in May.

Bulle market fundamentals:

Gold continued to trade in a narrow range above $3,350 after a slight increase on Wednesday.

Analysis of major currency trends:

Euro: The intraday bias of the euro/dollar remains neutral at present. The rebound from 1.1064 may continue to move higher, but at least on the first attempt, you should see a strong resistance level of 1.1572 to limit upside space. On the downside, breaking through the 1.1209 support level will indicate that the correction mode of 1.1572 has begun the third round and aiming at the 1.1064 support level.

Pound: The intraday bias of GBP/USD remains neutral as it remains within the range below 1.3592. Further rise is expected with the 1.3389 support intact. On the positive side, a firm breakthrough of 1.3592 will resume a larger upward trend, reaching a 100% forecast from 1.3138 to 1.3874 to 1.2706 to 1.3442. However, a decisive breakthrough of 1.3389 will redirect bias to the downside of the 1.3138 support level.

JPY: USD/JPY is still in range trading, and intraday bias remains neutral. On the plus side, above 146.27 will first aim at the 148.64 resistance level. A resolute breakthrough will resume a rebound from 139.87. Nevertheless, a breakout of 142.10 will bring a deeper decline to the low of 139.87.

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