GBP/USD fell to 1.5450. UK CPI contracted in April on the annual basis. This means that the Bank of England may be father away from raising the interest rates than the market has thought. On Wednesday the Bank of England will release its meeting minutes. Decline below 1.5400 will open the way down to 1.5270 and 1.5150. Resistance is in the 1.5570/1.5600 area.
USD/JPY rose towards 120.50 on good figures from the US. The pair awaits the release of Japan’s Q1 GDP. Weak reading will help the pair get higher. Further resistance is at 120.85 and 121.00. Support is located at 119.90, 119.50 and 119.30.
AUD/USD fell to 0.7935. The minutes of the Reserve Bank of Australia’s meeting minutes showed that the central bank doesn’t rule out further rate cuts. Support is at 0.7855 and 0.7780. The levels of 0.8000/30 are now acting as resistance.
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No obvious macro catalysts to steer the bus
The US data calendar remains relatively light, with initial jobless claims and the University of Michigan survey being the key focus. However, these releases may not provide a significant catalyst for the next directional move in the US Dollar.