ISM manufacturing index unexpectedly improved in May
The manufacturing activity in the U.S. rose unexpectedly in May, despite the early concerns regarding the outlook of the second quarter growth.
The index of manufacturing activity rose to 51.3 last month from April’s 50.8.
The OECD cut its growth forecast for this year of the 34 countries in the organisation to 1.8% instead of the previous forecast of 2.2%.
For next year the OECD expects a growth of 2.1% instead of 2.3% as in the previous forecast.
In addition, the OECD warned that Britain’s exit from the European Union may result in a shock to the world markets.
The future contracts on Wall Street are signalling on a negative opening of the trading day ahead of ISM report (at 15:00 GMT+1)
Bank Of America
The price of the stock have reached to a resistance area, around the level of 15.00 and created a double top pattern, as seen on a daily chart.
Alongside this pattern there is a bearish divergence at the indicators of MACD and RSI.
Yesterday the price of the stock went down by 0.74% and ended the trading day at the price level of 14.77.
For Forex traders:
Sell between the levels of : 15.00 – 14.75.
Stop loss point : 15.15.
Take profit point : 14.10.
For Binary options traders:
A put option between the levels of : 15.00 – 14.75.
Expiry time : June 3.
The manufacturing activity in the Euro zone slowed in May to a low of three months.
In May, the index fell to 51.5 points, compared with 51.7 in April.
According to estimates, China’s debt levels reached a peak of 280% of GDP and many fear that the world’s second economy is heading towards a huge crisis.
Last year Bank of China launched a package of incentives designed to encourage the credit market to support growth rate and economy, but in the first quarter of 2016 China’s growth rate fell to 6.7%, the lowest rate since 2009.
The trading day on Wall Street ended yesterday with a mixed trend, in a monthly summary the indices close higher.
The S&P closed with a monthly rise of 1.5%, the Dow Jones ended the month in a positive trend for the fourth consecutive month and the NASDAQ signed a positive month as well.
Wall Street futures signalling a slight increase of 0.1% at the opening of the trading day.
Commodity market, the oil price rises and continues to be trading around 50 dollars a barrel.
The unemployment rate in the EU have reached to a low of seven-year
The Euro zone unemployment rate in April remained at 10.2%, according to forecasts.
However, the unemployment rate of the European Union’s fell to 8.7%, a record low of 7 years.
In May, the German unemployment rate reached a low of 6.1%, it’s lowest unemployment rate since 1990, the year then West Germany merged with East Germany.
GBP/JPY
On a daily chart the pair arrived to a strong resistance, around the level of 164.00.
At today’s high, the pair touched the level of 163.87.
On 4 hours chart there is a bearish divergence at the indicators of MACD and RSI, compared to the last move of the pair.
Also, we got a bearish engulfing pattern.
For Forex traders:
Sell between the levels of : 162.75 – 162.00.
Stop loss point : 164.05
Take profit point : 157.15
For Binary options traders:
A put option between the levels of : 162.75 – 162.00.
Expiry time : June 10.
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