Based on Elliot Waves, I am expecting a retracement. On the macro front, ECB's Schnabel speech and BoE's Bailey speech will likely have an impact on Sterling which we should continue to monitor. Given the high inflation in the UK, it is likely (highly likely) that BoE's speech will be about curbing the inflation through aggressive monetary policy. Therefore, we should expect the pound to edge higher.
US QoQ GDP is expected to come in at -1.5% as well. MoM I would say it could end up both ways.
From yesterday's Consumer confidence, we have noted that confidence level of consumers have dropped sharply. Despite the gloomy outlook, consumers showed little sign of cutting back on spending, with buying plans for motor vehicles and other big ticket items like refrigerators and washing machines increasing. But fewer consumers compared to April intended to go away on vacation at home or abroad, reflecting record high gasoline prices and expensive airfares. S&P CoreLogic Case-Shiller national home price index increased 20.4% on a year-on-year basis in April after surging a record 20.6% in March.
However, based on earning reports such as Nike, it was kind of disappointing. Hence, it might have shed some light onto the GDP growth - negative growth.
My current trading plan, is to trade on the retracement while waiting for the macro news later.
US QoQ GDP is expected to come in at -1.5% as well. MoM I would say it could end up both ways.
From yesterday's Consumer confidence, we have noted that confidence level of consumers have dropped sharply. Despite the gloomy outlook, consumers showed little sign of cutting back on spending, with buying plans for motor vehicles and other big ticket items like refrigerators and washing machines increasing. But fewer consumers compared to April intended to go away on vacation at home or abroad, reflecting record high gasoline prices and expensive airfares. S&P CoreLogic Case-Shiller national home price index increased 20.4% on a year-on-year basis in April after surging a record 20.6% in March.
However, based on earning reports such as Nike, it was kind of disappointing. Hence, it might have shed some light onto the GDP growth - negative growth.
My current trading plan, is to trade on the retracement while waiting for the macro news later.