In the US, streets will still carry on to absorb the recent data releases to evaluate projections of a rebound in economic growth in Q2 and now some more in the row. Yes indeed it would IP, empire state MI and consumer sentiment for the weekend.April’s IP data: The main release will be industrial production for April where we look for a 0.2% monthly rise. It would be very significant as it measures any modification in the inflation to the adjusted value of manufactured outputs by factories, mines, and other utilities.As stated in our recent posts this number has recently been affected by volatile, weather-related utilities output, perhaps of more interest will be the manufacturing component which contracted in Q1 for the first time.Empire State Manufacturing Index: For a more futuristic channel, the NY Fed Empire manufacturing survey is expected to show a rebound in May after a unsatisfactory and unanticipated drop in April. It is nothing but a level of a diffusion index based on survey of major manufacturers in New York.Michigan Consumer Sentiment: Preliminary consumer sentiment figures from the University of Michigan survey will also be released today and is expected to show an increase, helped by further employment gains.Technicals and Futures Trade Tips:As dollar was stagnant on its overnight session, bears in early Europe session started showing dollar’s appreciation. We restate again our certainty in being short EURUSD at current levels as the cart is moving ahead of the horse, and take a cautious view on further price appreciation over the near term.Intraday charting patterns were mainly driven by tug of war between Euro’s bulls and bears although Euro’s trade sentiment was sluggish. Even though this rally was able to display a strong bullish candle in the beginning but could not sustain the same during the course of the day.Oscillating indicators signals only downswings in this pair in intraday charts to substantiate the further slumps.Dear trader speculators, you can benefit from shorting futures on intraday downswings but remember the short covering before data announcements as stated above. Because the shorts should be confirmed with the underlying news.Kindly remember as the expiry period approaches, the futures contract price converges to the spot price of the Underlying currency.
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