Here's the details of the economic calendar for May 12:
Yesterday's economic calendar was filled with statistical indicators. As a result of which, it was likely to see a fairly high market activity.
Let's start analyzing the statistics from the UK GDP data for the first quarter, where the next assessment of the economy reflected a decline of -6.1% in annual terms and -1.5% in quarterly terms.
Traders were not surprised by the indicators and they were even happy that the recession did not deepen.
Along with the GDP, Britain also published its industrial production data, where there was growth of 1.8%.
By the time the UK statistics were released, the value of the pound sterling increased.
It was followed by European statistics, where data on industrial production was also released, reflecting a fairly large growth of + 10.9%.
The Euro currency reacted averagely to the positive statistics and did not strengthen in value.
The main event in the economic calendar yesterday was the publication of US inflation data, where speculators dominated the market.
The US consumer prices hit a record 4.2% year-on-year, which is the highest since September 2008.
Inflation is rising so fast that investors are concerned about whether the Central Bank's monetary policy will change. Due to this, we could observe price fluctuations during the publication of the data, where the dollar rate moved up and down, but still determined to take the lead at the end of the day.
Analysis of trading charts from May 12:
The EUR/USD pair was able to break through the side channel 1.2115/1.2180 yesterday, where its lower border was broken during the US trading session.
It can be noted that the time of breakdown of the lower border coincided with the publication of American statistics.
The trading recommendation from May 12 considered trading on the breakdown of one or another border of the range, where the entry into the sell position was carried out approximately in the area of the coordinate 1,2100, which brought us a profit by the end of the day.
Meanwhile the British currency completed a 45-hour stagnation within the borders of 1.4100/1.4165, accelerating along a downward trajectory, which resulted in the breakdown of the coordinates of 1.4100. After that, the quote headed towards the forecasted level of 1.4050.
The end of the stagnation coincides with the publication of US statistics.
The trading recommendation on May 12 considered trading on the breakdown of stagnation, while working on the outgoing impulse, which ultimately happened in the market. It was possible to earn easily about 50 points, equivalent to $ 50 with a trade volume of 1 InstaLot.
Trading recommendations of EUR/USD and GBP/USD on May 13, 2021
Today, the United States will publish its producer price index, where it is expected to increase from 4.2% to 5.9%.
Producer Price Index is prepared by the Bureau of Labor Statistics of the United States Department of Labor. The report estimates the average change in wholesale prices determined by manufacturers at all stages of production. The growth of the index may lead to the strengthening of the national currency - USD.
USA 12:30 Universal Time - Producer Price Index
Together with the index, America's applications for unemployment benefits will also be released, where the volume is expected to decline.
Volume of initial applications for benefits may rise from 498 thousand to 490 thousand.Volume of repeated applications for benefits may decline from 3 690 thousand to 3 655 thousand.Applications reflect the number of citizens who are not currently working and receiving unemployment benefits. This indicator reflects the state of the labor market, where the growth of the indicator negatively affects the level of consumption and economic growth.
To simply put it, an increase in the number of applications leads to a weakening of the national currency, while a decrease leads to growth.
Looking at the EUR/USD trading chart, the amplitude price fluctuation within the borders of stagnation 1.2065/2088 can be observed. Given speculators' high interest, it can be assumed that the price will not stay within the established framework and another impulse move will soon take place in the market. The best tactic is a breakdown of a particular border, working on the outgoing impulse.
As for the GBP/USD trading chart, it shows the price fluctuations within the level of 1.4050, with an amplitude of 30 points. If the price is held below the level of 1.4040, a subsequent decline towards the range of 1.4000-1.3950 will not be ruled out.