Daily Forex Analysis - 13th May 2021

USD Overview (13 May 2021)

Yesterday, USD strengthened against all major currencies.

The CPI m/m data released yesterday indicated a sharp increase in inflation in April. Measured from a year ago, annual inflation rose by 4.2%, the fastest since 2008.

- CPI m/m (Actual: 0.8%, Forecast: 0.2%, Previous: 0.6%)

- Core CPI m/m (Actual: 0.9%, Forecast: 0.3%, Previous: 0.3%)

During their talks yesterday, FOMC members Clarida and Bostic downplayed the sharp rise of inflation in April. Clarida highlighted that Aprils data is only “one data point” and is likely going to be transitory while Bostic said that volatility in inflation is expected to last four to five months as the country is going through a turbulent time.

The Unemployment Claims data (Forecast: 487K, Previous: 498K) will be released later at 2030 (SGT).

NZD/USD Outlook (13 May 2021)

Overall, NZD/USD is trending upwards. Recently, NZD/USD bounced off the resistance zone and broke below the key level of 0.72 after the release of the strong U.S. inflation data.

NZD/USDs next support zone is at 0.71000 and the next resistance zone is at 0.72850.

Look for short-term selling opportunities of NZD/USD.

AUD/USD Outlook (13 May 2021)

Overall, AUD/USD is trending upwards. Recently, AUD/USD, broke the support zone of 0.78000 after the release of the strong U.S. inflation data.

AUD/USDs next support zone is at 0.77500 and the next resistance zone is at 0.78000.

Look for selling opportunities of AUD/USD.

USD/JPY Outlook (13 May 2021)

Overall, USD/JPY is ranging across. Recently, USD/JPY broke above the key level of 109 after the release of the strong U.S. inflation data.

USD/JPYs next support zone is at 108.500 and the next resistance zone is at 110.800.

Look for buying opportunities of USD/JPY.

EUR/USD Outlook (13 May 2021)

Overall, EUR/USD is trending upwards. Recently, EUR/USD rejected the resistance zone of 1.21500 after the release of the strong U.S. inflation data.

In their released Economic Forecast yesterday, the EU projects that the EU economy will expand by 4.2% this year, an upgrade from its previous forecast.

French and German banks will be closed today in observance of Ascension Day. Hence, there may be lower trading volatility and volume during the usual European market session.

EUR/USDs next support zone is at 1.19700 and the next resistance zone is at 1.21500.

Look for short-term selling opportunities of EUR/USD.

GBP/USD Outlook (13 May 2021)

Overall, GBP/USD is trending upwards. Recently, GBP/USD broke below the key level of 1.40 after the release of the strong U.S. inflation data.

The UK Preliminary GDP q/q data (Actual: -1.5%, Forecast: -1.6%, Previous: 1.3% revised from 1.0%) released yesterday indicated negative economic growth during the first quarter of 2021 as a result of the imposed COVID restrictions across the UK.

Bank of England Governor will be speaking tomorrow at 0000 (SGT). During this time, there may be volatility in GBP.

GBP/USDs next support zone is at 1.40000 and the next resistance zone is at 1.43500.

Look for short-term selling opportunities of GBP/USD.

USD/CAD Outlook (13 May 2021)

Overall, USD/CAD is trending downwards.

Bank of Canada Governor Macklem will be speaking later at 2300 (SGT). During this time, there may be volatility in CAD.

Currently, USD/CAD is testing the support zone of 1.21000 and the next resistance zone is at 1.22400.

Look for short-term buying opportunities of USD/CAD if it bounces off the support zone of 1.21000.

GBP/JPY Outlook (13 May 2021)

Overall, GBP/JPY is trending upwards.

The UK Preliminary GDP q/q data (Actual: -1.5%, Forecast: -1.6%, Previous: 1.3% revised from 1.0%) released yesterday indicated negative economic growth during the first quarter of 2021 as a result of the imposed COVID restrictions across the UK.

Bank of England Governor will be speaking tomorrow at 0000 (SGT). During this time, there may be volatility in GBP.

Currently, GBP/JPY is testing to break above the key level of 154. Its next support zone is at 153.000 and the next resistance zone is at 155.000.

Look for buying opportunities of GBP/JPY if it breaks above the key level of 154.

EUR/JPY Outlook (13 May 2021)

Overall, EUR/JPY is trending upwards. Recently, EUR/JPY bounced up from the key level of 132.

French and German banks will be closed today in observance of Ascension Day. Hence, there may be lower trading volatility and volume during the usual European market session.

EUR/JPYs next support zone is at 130.800 and the next resistance zone is at 132.800.

Look for short-term buying opportunities of EUR/JPY.